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1-Draw a Time Line 2-Write Step by Step process in your Fin Calculator 3-Write the answer 6-4.A Treasury bond that matures in 10 years has

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1-Draw a Time Line

2-Write Step by Step process in your Fin Calculator

3-Write the answer

6-4.A Treasury bond that matures in 10 years has a yield of 5.75%. A 10year corporate bond has a yield of 8.75%. Assume that the liquidity premium on the corporate bond is 0.35%. What is the default risk premium on the corporate bond

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