Calculate a table of interest rates based

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Reference no: EM13764977

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 .1% for year one and increases by .1% over each year

Liquidity premium is 0 for year 1 and increases by .15% each year

Reference no: EM13764977

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