Calculate a table of interest rates

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Reference no: EM13910434

Calculate a table of interest rates based on the following information:

The pure interest rate is 2.5%

Inflation expectations for year 1= 2%, year 2 = 4%, years 3-5 = 5%

The default risk is 0.1% for year 1 and increases by 0.1% over each year

Liquidity premium is 0 for year 1 and increases by 0.15% each year

Reference no: EM13910434

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