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Rivendell corp. is determining interest rates for their new issues of bonds. Current real risk-free rate is 0.1%, inflation premium is 0.5%. If Rivendell's default

Rivendell corp. is determining interest rates for their new issues of bonds. Current real risk-free rate is 0.1%, inflation premium is 0.5%. If Rivendell's default risk premium is 1%, liquidity premium is 0.5% and maturity risk premium is 0.92%.



What is the required return on their bonds?

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