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A Treasury bond that matures in 10 years has a yield of 6 A 10 year corporate bond has a yield of 8 Assume that the liquidity premium on the corporate bond is 0 5 What is the default risk

A Treasury bond that matures in 10 years has a yield of 6%. A 10-year corporate bond has a yield of 8%. Assume that the liquidity premium on the corporate bond is 0 5%. What is the default risk premium on the corporate bond?

 

Aug 30 2020 View more View Less

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