Question: You are given the following data: r * = real risk - free rate: 0 . 5 % Inflation premium ( IP ) : 4
You are given the following data:
r real riskfree rate:
Inflation premium IP:
Maturity risk premium MRP:
Default risk premiumDRP:
Liquidity risk premium LP:
Given these conditions, the interest rate on shortterm corporate bonds is:
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