Assume the following:·The real risk-free rate of return is 3%.·The expected inflation premium is 5%.·The market-determined interest rate of a security is 12%.The sum of the default risk premium, liquidity premium, and maturity premium for the security isclosestto: A: 10%. B: 4%. C: 8%.
Assume the following:·The real risk-free rate of return is 3%.·The expected inflation premium is 5%.·The market-determined interest rate of a security is 12%.The sum of the default risk premium, liquidity premium, and maturity premium for the security isclosestto: A: 10%. B: 4%. C: 8%.
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