Question: A particular security's default risk premium is 2 percent. For all securities, the inflation risk premium is 1.90 percent and the real risk-free rate is

A particular security's default risk premium is 2 percent. For all securities, the inflation risk premium is 1.90 percent and the real risk-free rate is 3.80 percent The security's liquidity risk premium is 0.10 percent and maturity risk premium is 0.70 percent The security has no special covenants. Calculate the security's equilibrium rate of return. (Round your answer to 2 decimal places.)

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