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a company's 5 years bonds are yielding 7.95% per year. treasury bonds with the same maturity are yielding 6.2% per year, and the real risk
a company's 5 years bonds are yielding 7.95% per year. treasury bonds with the same maturity are yielding 6.2% per year, and the real risk free rate is 2.2%. The average inflation premium is 3.6% and the maturity risk premium is stimated to be 0.1 * (t-1)%, If liquidation premiun is 1.05% what is the defoult risk premiun on the corporation bonds?
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