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QUESTION
Determinants of Interest Rate for Individual Securities A particular security's default risk premium is 3.10 percent. For all securities, the...
Determinants of Interest Rate for Individual Securities A particular security's default risk premium is 3.10 percent. For all securities, the inflation risk premium is 1.85 percent and the real interest rate is 2.80 percent. The security's liquidity risk premium is .50 percent and maturity risk premium is .35 percent.
