You are considering an investment in 30-year bonds what is


You are considering an investment in 30-year bonds. The 1-year Treasury bill rate is 3.25%. The risk free rate is 2%, the default risk premium is 1.05%, the liquidity risk premium is 0.5% and the maturity risk premium is 1.75%.

What is the inflation premium ?

What is the fair interest rate on the bond ?

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Financial Management: You are considering an investment in 30-year bonds what is
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