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6-4 6-5 securities? DEFAULT RISK PREMIUM A Treasury bond that matures in 10 years has a yield of 6%. A 10-year corporate bond has

6-4 6-5 securities? DEFAULT RISK PREMIUM A Treasury bond that matures in 10 years has a yield of 6%. A 10-year corporate bond has a yield of 8%. Assume that the liquidity premium on the cor- porate bond is 0.5%. What is the default risk premium on the corporate bond? MATURITY RISK PREMIUM The real risk-free rate is 3%, and inflation is expected to be

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