• Imagine a particular security’s default risk premium is 2 percent. For all securities, the inflation risk premium is 1.75 percent and the real risk-free rate is 3.50 percent. The security’s liquidity risk premium is 0.25 percent and maturity risk premium is 0.85 percent. The security has no special covenants. Calculate the security’s equilibrium rate of return. Show your work.

is there a picture

step-by-step explanation:

, and

for

step-by-step explanation:

we can analyze the pattern at which the terms increase. let us denote , , , so that we can call

note the following:

the pattern: to get the next term value, we just add the next term number (e.g. 1st, 2nd, to the previous term value (term values are the given numbers in the question, 1, 3, 6, 10, 15,

from , to get to , we add

from , to get to , we add

etc.

we need to form a recursive formula, a formula that has the next term as a function of the previous term. so a possible recursive formula can be

, and for

b. would be the answer : )

step-by-step explanation:

step 1: add -16x to both sides.

16x−4y+−16x=64+−16x  

−4y=−16x+64

step 2: divide both sides by -4.

−4y /-4 = -16x + 64/-4

answer:   y=4x−16

hope i'm right

answer: $13,622.84

step-by-step explanation: check the picture for info and stats : )