What is the annual inflation premium

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Question 1: The risk-free interest rate is 3.8% per year. If the liquidity premium is 0.4% per year, the maturity premium is 0.7% per year, the real interest rate is 1.9% per year, and the default premium is 1.5% per year, what is the annual inflation premium?

1) 2.1%
2) 1.9%
3) 1.6%
4) 2.0%
5) 1.7%

Reference no: EM132653093

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