The security has no special covenants calculate the


A particular security 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 percent. The security's liquidity risk premium is .25 percent and maturity risk premium is .85 percent. The security has no special covenants. Calculate the securities default risk.

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Financial Management: The security has no special covenants calculate the
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