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The current interest rate premiums for relatively safe

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You see that the current 30-day T-bill rate is 4.5%. You are told by a friend who works for an investment firm that the best estimates of the current interest rate premiums for relatively safe corporate firms is as follows: inflation premium = 2.1%; default risk premium = 1.4%. Based on this data, what is the real risk-free rate of return?

Reference no: EM13479395

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