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    Exam 5: The Cost of Money Interest Rates
  5. Question
    The Real Rate of Interest Is Composed of a Risk-Free
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The Real Rate of Interest Is Composed of a Risk-Free

Question 38

Question 38

True/False

The real rate of interest is composed of a risk-free rate of interest plus the default risk premium and liquidity premium that reflects the riskiness of the security. 

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