21. Suppose 6-year Treasury-Bonds have a yield of 5.55% and 6-year corporate bonds yield 8.7%. Also, corporate bonds have a 1.25% liquidity premium versus a zero liquidity premium for Treasury-Bonds, and the maturity risk premium on both Treasury and corporate 6-year bonds is equal . What is the default risk premium (DRP) on corporate bonds? A. 1.08% B. 1.20% C. 1.90% D. 2.45% E. 2.90% 22. D Wade owns a Bron Bron Inc, bond with 3 years to maturity and a 10% semi-annual coupon rate. If the current market average bond rate (yield-to-maturity) is 14% and expected to remain constant over the next year, what is the expected Capital Gains Rate over the next year? A. 0.95 percent B. 1.55 percent C.2.35 percent D.3.05 percent E.4.56 percent 23. If the five answers are all current bond prices (PVs), which bond is the least likely to be called early? A. $867.52 B. $922.09 C. $1000.09 D. $1055.10 E. $1148.00