A particular securitys equilibrium rate of return is 8


Question: A particular security's equilibrium rate of return is 8 percent. For all securities, the inflation risk premium is 1.75 percent and the real risk free rate is 3.5%. The securities liquidity risk premium is 0.25% and maturity risk premium is 0.85%. The security has no special covenants. Calculate the security's default risk premium

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Finance Basics: A particular securitys equilibrium rate of return is 8
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