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11. Suppose 10-year T-bonds have a yield of 5.50% and 10-year corporate bonds yield 6.75 %. Also, corporate bonds have a 0.25 % liquidity premium

11. Suppose 10-year T-bonds have a yield of 5.50% and 10-year corporate bonds yield 6.75 %. Also, corporate bonds have a 0.25 % liquidity premium versus a zero liquidity premium for T- bonds, and the maturity risk premium on both Treasury and corporate 10 -year bonds is 1.15%. What is the default risk premium on corporate bonds ? *

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