Question: D Question 29 is estimated that inflation will average 3.00% per year for the next 3 years, and average 7.30% each year thereafter. For a

D Question 29 is estimated that inflation will average 3.00% per year for the next 3 years, and average 7.30% each year thereafter. For a rea risk-fite rate of 2009, what is the default risk premium of a 17-year corporate bond with a yield of 12.60%? Assume that the Ipuidity premium is 2.60%, but there is no maturity risk premium. 01.04 01444 0.1318 0159 0140

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