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How many years do this corporate issued bond will mature

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Question - A particular long-term corporate bond is quoted at 13.55%. Real risk-free rate is constant at 1% while liquidity risk premium is 1.50%. Maturity risk premium and default risk premium are 4.25% and 2%, respectively. Inflation is expected to be 2% and 4% for the next two years, and constant at 6% for the years after. How many years do this corporate issued bond will mature?

Reference no: EM133184554

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