Find the default risk premium for a debt security given the following information: inflation premium

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August 7, 2017
International Business Term Paper
August 7, 2017
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Find the default risk premium for a debt security given the following information: inflation premium

Find the default risk premium for a debt security given the following information: inflation premium = 3 percent, maturity risk premium = 2.5 percent, real rate = 3 percent, liquidity premium = 0 percent, and nominal interest rate = 10 percent.


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