Question: 8 10. Find the default risk premium (DRP) for a debt security given the following information: inflation premium = 2.5 percent, maturity risk premium =

8 10. Find the default risk premium (DRP) for a debt security given the following information: inflation premium = 2.5 percent, maturity risk premium = 2.5 percent, real rate-3 percent, liquidity premium = 1.5 percent, and nominal interest rate = 14 percent. a

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