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P6–8 Risk-free rate and risk premiums: The real rate of interest is currently 3%; the inflation expectation and risk premiums for a number of securities follow. *** Please See Attachment for Table*** a. Find the risk-free rate of interest, RF, that is applicable to each security. b. Although not noted, what factor must be the cause of the differing risk-free rates found in part a? c. Find the nominal rate of interest for each security.
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P68 Risk-free rate and risk premiums:
The real rate of interest is currently 3%; the inflation expectation and risk premiums for a number of
securities follow.
*** Please See Attachment for...