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A bond has a promised yield-to-maturity of 10% with a default premium of 4% and a risk premium of 2%. Its expected yield-to-maturity is (a)

A bond has a promised yield-to-maturity of 10% with a default premium of 4% and a risk premium of 2%. Its expected yield-to-maturity is (a) 8%. (b) 4%. (c) 12%. (d) 16%. (e) 6%. Please show work

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