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Write out the equation for the required interest rate

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Reference no: EM131279104

1. Write out the equation for the required interest rate on a debt security.

2. What is the difference between the real risk-free rate (RRF) and the risk-free rate (RF)?

3. Do the interest rates on Treasury securities include a default risk premium (DRP)? A liquidity premium (LP)? A price risk premium (PRP)? Explain your answer.

Reference no: EM131279104

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