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10 year treasury bonds yield 3.5% and 10 year corporate bonds yield 7.15%. the maturity risk premium on both 10 year treasury and corporate bonds
10 year treasury bonds yield 3.5% and 10 year corporate bonds yield 7.15%. the maturity risk premium on both 10 year treasury and corporate bonds is 1.3%. corporate bonds have a 0.65% liquidity premium, while T bonds have a zero liquidity premium. what is the default risk premium on corporate bonds?
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