Credit card are so different in terms of interest offering

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Reference no: EM132050503

Explain why Car loans(Auto Loans), Mortgage, and Credit Card are so different in terms of interest offering based on the formula components, such as Risk Free Rate, Inflation Premium, Default Risk Premium, Maturity Risk Premium and Liquidity Premium. You need to relate those components with the length/duration of lending period, and types of collateral, like housing for Mortgage, vehicle for Auto loans and none for credit card. Use your own thought, opinion and other information you found online.

Reference no: EM132050503

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