Question: 1 2. Calculate the rate AAA in the last problem should expect to pay on a two year loan. Assume a 4% default risk premium

2. Calculate the rate AAA in the last problem should expect to pay on a two year loan. Assume a 4% default risk premium and liquidity and maturity risk premiums of 3% due to the longer term. Inflation is expected to be 5% in the loan's second year

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