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2- The interest rate on a ten-year Treasury bond is 9.25 percent. A comparable mat bond is 9.25 percent. A comparable maturity Aaa-rated corporate bond

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2- The interest rate on a ten-year Treasury bond is 9.25 percent. A comparable mat bond is 9.25 percent. A comparable maturity Aaa-rated corporate bond is yielding 10 percent. Another comparable maturity, but lower-quality cornorate bond has a yield of 14 percent, w corporate bond has a yield of 14 percent, which includes a liquidity e premium of 1.5 percent. a. Determine the default risk premium (DRP) on the Aaa-rated bond. b. Determine the DRP on the lower-quality corporate bond

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