Interest rates on treasury securities, Operation Management

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Interest rates on treasury securities

Assignment:

Q1. Write out the equation for the required interest rate on a debt security.

Q2. What is the difference between the real risk-free rate (RRF) and the risk-free rate (RF)?

Q3. Do the interest rates on Treasury securities include a default risk premium (DRP)? A liquidity premium (LP)? A price risk premium (PRP)? Explain your answer.

Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.

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Operation Management: Interest rates on treasury securities

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