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a bank is willing to make a 5 yr loan to Tryst co at 13 interest rate The US government is currently paying 6 annual interest on its 5 yr securities The real rate of interest is 3 Based on

a bank is willing to make a 5 yr loan to Tryst co. at 13% interest rate. The U.S

government is currently paying 6% annual interest on its 5 yr securities. The real rate of interest is 3%. Based on the above information which of the following statement is true?

Inflation premium is 5%

Total risk premium is 4%

Inflation premium is 2%

Total risk premium is 7%

A&D

please choose correct answer

 

Sep 08 2020 Read more Less More

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