What is the annual real interest rate

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Question 1: The risk-free interest rate is 5.7% per year, the liquidity premium is 0.5% per year, the maturity premium is 1.6% per year, the inflation premium is 2.6% per year, and the default premium is 1.9% per year. What is the annual real interest rate?

1) 1.7%

2) 3.1%

3) 1.9%

4) 1.5%

5) 2.3%

Reference no: EM132653097

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