Question
a 10-year t bond has a yield of 3.2% a 10-year corporate bond yield is 5.2 %. the maturity risk premium on all 10-year bonds
a 10-year t bond has a yield of 3.2% a 10-year corporate bond yield is 5.2 %. the maturity risk premium on all 10-year bonds is 0.8% and corporate bonds have a .2% liquidity premium versus zero liquidity premium for t bonds. what is the default risk premium on the corporate bond?
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Financial Institutions Investments And Management An Introduction
Authors: Herbert B. Mayo
8th Edition
0324178174, 9780324178173
