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311> Chapter 6 Homework-... Problem 6 Intro A corporate bond with 20 years to maturity yields 6.9% and has a liquidity premium of 0.9%. The

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311> Chapter 6 Homework-... Problem 6 Intro A corporate bond with 20 years to maturity yields 6.9% and has a liquidity premium of 0.9%. The real short-term risk-free rate is 1% and the average expected inflation rate over the next 20 years is 2%. The maturity risk premium is expected to be 0.001 "T, where T is the number of years to maturity Part 1 Attempt 1/6 for 5 pts What is the default risk premium on the corporate bond? Submit * @ # 92 #3 W 20 F E DED 800 $ 54 R % 5 T MacBook Air A S Y & 7

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