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Author Question: Crockett Corporations 6-year bonds yield 7.95%, and 6-year government bonds yield 5.45%. The real ... (Read 28 times)

jordangardner

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on: Aug 7, 2023
Crockett Corporation’s 6-year bonds yield 7.95%, and 6-year government bonds yield 5.45%. The real risk-free rate is r* = 3.10%, the default risk premium for Crockett’s bonds is DRP = 1.10% versus zero for T-bonds, the liquidity premium on Crockett’s bonds is LP = 1.4%, and the maturity risk premium for all bonds is found with the formula MRP = (t – 1)×0.1%, where t = number of years to maturity. What is the inflation premium (IP) on 6-year bonds?

◦

1.35%


◦

1.50%


◦

1.70%


◦

1.85%

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by jordangardner on Aug 7, 2023

SphnxKickin

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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jordangardner

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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