Question: a particular securitys default risk premium is 4 percent. For all securities the inflation risk premium is 3.65 percent and the real risk-free rate is
a particular securitys default risk premium is 4 percent. For all securities the inflation risk premium is 3.65 percent and the real risk-free rate is 7.30 percent. The security has no special covenants. Calculate the securitys equilibrium rate of return
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