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Question: can i please also have the formulas included with the...

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Problem 1 (10 points) FIN300 Inc.s 5-year bonds yield 7.50% and 5-year T-bonds yield 4.90%. The real risk-free rate is r*- 2.5%, the default risk premium for FIN300s bonds is DRP 0.40%, the liquidity premium on FIN300s bonds is LP-2.2% versus zero on T-bonds, and the inflation premium (IP) is 1.5%. What is the maturity risk premium (MRP) on all 5-year bonds?

Can I please also have the formulas included with the answer? Thanks!

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