Question

The real rate of interest is currently 296, find the required return for securities A and B Inflation maturity premium Time to Default riskLiquidity Maturity risk premium 1.596 2.5% premium 1.0% 1.596 premium 0.596 2.06 Security A 3 years 9.06 Security B 15 years 7.06Find the required return for securities A and B.

The real rate of interest is currently 2%

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