Question: Chapter 6 HW 30 points i Saved Help Save & Exit Submit Check my work 13 Problem 6-3 Determinants of Interest Rates for Individual Securities
Chapter 6 HW 30 points i Saved Help Save & Exit Submit Check my work 13 Problem 6-3 Determinants of Interest Rates for Individual Securities (LG6-6) points Skipped Dakota Corporation 15-year bonds have an equilibrium rate of return of 10 percent. For all securities, the inflation risk premium is 1.75 percent and the real risk-free rate is 3.50 percent. The security's liquidity risk premium is 0.85 percent and maturity risk premium is 1.45 percent. The security has no special covenants. Calculate the bond's default risk premium. (Round your answer to 2 decimal places.) eBook References Default risk premium %
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