Compute a table of interest rates


Calculate a table of interest rates based on the following information:

•The pure interest rate is 2.5%.

•Inflation expectations for year 1 = 2%, year 2 =4%, years 3-5 =5%.

•The default risk is .1% for year one and increases by .1% over each year.

•Liquidity premium is 0 for year 1 and increases by .15% each year.

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Business Management: Compute a table of interest rates
Reference No:- TGS071984

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