Question: A particular security's default risk premium is 3 percent. For all securities, the inflation risk premium is 2.90 percent and the real riskfree rate is

A particular security's default risk premium is 3 percent. For all securities, the inflation risk premium is 2.90 percent and the real riskfree rate is 3.50 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 retum. (Round your answer to 2 decimal places.)

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