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  3. 1. the real rate of return of myla corporation has

1. The real rate of return of MYLA Corporation has been averaging at 3.2% for...

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1. The real rate of return of MYLA Corporation has been averaging at 3.2% for the past 6 years. The risk premium associated with investment on MYLA's bonds has been determined at 2.9%. Statistics indicated the inflation rate will reach 3.9%. Compute the following: a. Risk-free rate of bond investment b. Bond effective interest rate

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