A companys 5-year bonds are yielding 955 per year what is, Financial Management

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A companys 5-year bonds are yielding 955 per year what is

A company's 5-year bonds are yielding 9.55% per year. Treasury bonds with the same maturity are yielding 5.5% per year, and the real risk-free rate (r*) is 2.65%. The average inflation premium is 2.45%, and the maturity risk premium is estimated to be 0.1 x (t - 1)%, where t = number of years to maturity. If the liquidity premium is 1.35%, what is the default risk premium on the corporate bonds?

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Financial Management: A companys 5-year bonds are yielding 955 per year what is

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Financial Management: A companys 5-year bonds are yielding 955 per year what is

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