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REAL RISK-FREE RATE You read in The Wall Street Journal that 30-day T-bitts are currently yielding 5.5%. Your brother-in-law, a broker at Safe and Sound Securities, has given you the following estimates of current interest rate premiums:

Inflation premium= 3.25%

Liquidity premium = 0.6%

Maturity risk premium = 1.8%

Default risk premium = 2.15%

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Financial Management, Finance

Category:- Financial Management
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