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Short term corporate commercial paper would contain which of the following risk premiums: Inflation Premium Default...

Short term corporate commercial paper would contain which of the following risk premiums:

Inflation Premium

Default Risk Premium

Liquidity Premium

Maturity Risk Premium

a, b and c

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Answer #1

While maturity risk premiums are for long term bonds compensated for the long maturity periods inherent in the security structure, inflation premiums, default risk premiums and liquidity premiums are common across long and short term bonds

So Answer is a) b) and C)

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