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A corporate bond that matures in 6 years has a yield of 6.08%. A Treasury bond that matures in 6 years has a yield of

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A corporate bond that matures in 6 years has a yield of 6.08%. A Treasury bond that matures in 6 years has a yield of 4.07%. The k is 0.67%. The inflation premium (yearly over the next 6 years) is 0.45%. Assume that the liquidity premium on the corporate bond is 1.04%. What is the default risk premium on the corporate bond? a. 0.97 percent b. 0.30 percent c. 3.67 percent d. 1.08 percent e. You can't calculate it since you don't have the MRP

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