A particular security’s equilibrium rate of return is 8 percent. For all securities, the inflation risk premium is 1.75 percent and the real risk-free rate is 3.5 percent. The security’s liquidity risk premium is 0.25 percent and maturity risk premium is 0.85 percent. The security has no special covenants. Calculate the security’s default risk premium
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- A particular security’s default risk premium is 2 percent. For all securities, the inflation risk premium is 1.75 percent and the real risk-free rate is 3.5 percent. The security’s liquidity risk premium is 0.25 percent and maturity risk premium is 0.85 percent. The security has no special covenants. Calculate the security’s equilibrium rate of return.A particular security's default risk premium is 3 percent. For all securities, the inflation risk premium is 2.75 percent and the real risk - free rate is 2.90 percent. The security's liquidity risk premium is 0.25 percent and maturity risk premium is 0.85 percent. The security has no special covenants. Calculate the security's equilibrium rate of return.A particular security's default risk premium is 3.70 percent. For all securities, the inflation risk premium is 2.45 percent and the real interest rate is 3.10 percent. The security's liquidity risk premium is .80 percent and maturity risk premium is .95 percent.The security has no special covenants. What is the security's equilibrium rate of return?
- A particular security's default risk premium is 3 percent. For all securities, the inflation risk premium is 1.75 percent and the real interest rate is 4.2 percent. The security's liquidity risk premium is 0.35 percent and the maturity risk premium is 0.95 percent. The security has no special covenants. What is the security's equilibrium rate of return?A particular security’s rate of return is 6 percent. For all securities, the inflation risk premium is 1.27 percent and the real risk-free rate is 1.09 percent. If the security’s liquidity risk premium is 0.91 percent, its defaul risk premium is 0.60 percent and has no special covenants, what is the security’s maturity risk premium.A particular security's default risk premium is 3 percent. For all securities, the inflation risk premium is 2.70 percent and the real risk- free rate is 2.70 percent. The security's liquidity risk premium is 0.30 percent and maturity risk premium is 0.90 percent. The security has no special covenants. Calculate the security's equilibrium rate of return. (Round your answer to 2 decimal places.) Rate of return %
- A particular security’s equilibrium rate of return is 8 percent. For all securities, the inflation risk premium is 2.45 percent and the real risk-free rate is 2.0 percent. The security’s liquidity risk premium is 0.75 percent and maturity risk premium is 0.95 percent. The security has no special covenants. Calculate the security’s default risk premium. (Round your answer to 2 decimal places. (e.g., 32.16)) What is the default risk premium %A particular security’s default risk premium is 2 percent. For all securities, the inflation risk premium is 1.75 percent and the real risk-free rate is 1.50 percent. The security’s liquidity risk premium is 0.25 percent and maturity risk premium is 0.85 percent. The security has no special covenants. Calculate the security’s equilibrium rate of return. (Round your answer to 2 decimal places.)1.A particular security’s default risk premium is 3 percent. For all securities, the inflation risk premium is 2.65 percent and the real risk-free rate is 1.50 percent. The security’s liquidity risk premium is 0.35 percent and maturity risk premium is 0.95 percent. The security has no special covenants. Calculate the security’s equilibrium rate of return. (Round your answer to 2 decimal places.) 2. A particular security’s default risk premium is 2 percent. For all securities, the inflation risk premium is 1.75 percent and the real risk-free rate is 1.50 percent. The security’s liquidity risk premium is 0.25 percent and maturity risk premium is 0.85 percent. The security has no special covenants. Calculate the security’s equilibrium rate of return. (Round your answer to 2 decimal places.)
- 4. A particular security’s equilibrium rate of return is 8 percent. For all securities, the inflation risk premium is 1.75 percent and the real interest rate is 3.5 percent. The security’s liquidity risk premium is .25 percent and maturity risk premium is .85 percent. The security has no special covenants. Calculate the security’s default risk premium.Determinants of Interest Rate for Individual Securities A particular security's default risk premium is 3.90 percent. For all securities, the inflation risk premium is 2.65 percent and the real interest rate is 3.20 percent. The security's liquidity risk premium is .90 percent and maturity risk premium is 1.15 percent. The security has no special covenants. What is the security's equilibrium rate of return?A particular security's default risk premium is 5 percent. For all securities, the inflation risk premium is 4.90 percent and the real risk- free rate is 3.10 percent. The security's liquidity risk premium is 0.10 percent and maturity risk premium is 0.70 percent. The security has no special covenants. Calculate the security's equilibrium rate of return. Note: Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34). Rate of return %