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19-01-2023
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4. 90-day T-bills are currently yielding 5 percent and the following estimates of current interest rate premium: • The real risk-free rate = 1% • Default risk premium (DRP) = 1.75% • Liquidity premium (LP) = 0.8% • Maturity risk premium (MRP) = 1.25% On the basis of these data, what is the inflation premium (IP) ?

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