Question: Aboitiz Equity Ventures issued a 7-year bond with a par value of P50,000 that pays a coupon of 8.47%. Coupon payments will be made

Aboitiz Equity Ventures issued a 7-year bond with a par value of

Aboitiz Equity Ventures issued a 7-year bond with a par value of P50,000 that pays a coupon of 8.47%. Coupon payments will be made annually. Investors required rate of return is composed of: real risk free rate of 1.5%; inflation premium of 4.5%; default risk premium of 2%; liquidity premium of 1.5%; and maturity risk premium of 2%. The required rate of return would be?

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