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A corporation is planning to sell its 90-day commercial paper to investors offering an 0.08 yield. If the three-month T-bills annualized rate is 0.04, the
A corporation is planning to sell its 90-day commercial paper to investors offering an 0.08 yield. If the three-month T-bills annualized rate is 0.04, the default risk premium is estimated to be 0.002 and there is a 0.004 tax adjustment, what is the appropriate liquidity premium? Enter the answer as a decimal using 4 decimals (e.g. 0.1234).
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