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1 . Stendardi Corporation's 5 - year bonds yield 7 . 5 0 % and 5 - year T - bonds yield 6 . 1
Stendardi Corporation's year bonds yield and year Tbonds yield The real riskfree rate is r the inflation premium for year bonds is IP the liquidity premium for Stendardis bonds is LP versus zero for Tbonds, and the maturity risk premium for all bonds is found with the formula MRP ttimes where t number of years to maturity. What is the default risk premium DRP on Stendardis bonds?
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