Java Inc. has a 15 year bond with liquidity premium of 0.9%, maturity risk premium of 1.2%.

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Java Inc. has a 15 year bond with liquidity premium of 0.9%, maturity risk premium of 1.2%. The bond yield is 9.8%. The real risk-free rate is 3.3% and average inflation for the period is 3.1% What is the default risk premium for Java Inc bonds?

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Fundamentals Of Financial Management

ISBN: 9780357517574

16th Edition

Authors: Eugene F. Brigham, Joel F. Houston

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Posted Date: Apr 04, 2024 06:26 AM

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Java Inc. has a 15 year bond with liquidity premium of 0.9%, maturity risk premium of 1.2%.

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Fundamentals Of Financial Management

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