Business, 17.09.2019 21:30 explained1256
Stu wants to earn a real return of 3.4 percent on any bond he acquires. the inflation rate is 2.8 percent. he has determined that a particular bond he is considering should have an interest rate risk premium of .27 percent, a liquidity premium of .08 percent, and a taxability premium of 1.69 percent. what nominal rate of return is stu demanding from this particular bond?
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Stu wants to earn a real return of 3.4 percent on any bond he acquires. the inflation rate is 2.8 pe...
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