Find the nominal interest rate for a debt security

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Reference no: EM13766403

Find the nominal interest rate for a debt security given the following information: real rate = 2%, liquidity premium = 2%, default risk premium = 4%, maturity risk premium

= 3%, and the inflation premium = 3%.

Find the default risk premium for a debt security given the following information: inflation premium = 3%, maturity risk premium = 2.5%, real rate = 3%, liquidity premium = 0%, and the nominal interest rate is 10%.

Reference no: EM13766403

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