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A T-bond that matures in 9 years has a yield of 10.5%. A 9-year corporate bond has a yield of 13%. Assume that the liquidity

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A T-bond that matures in 9 years has a yield of 10.5%. A 9-year corporate bond has a yield of 13%. Assume that the liquidity premium on the corporate bond is 0.5%. What is the default risk premium on the corporate bond? Select one: a. 1.0% b. 0.5% O O O c. 4.5% d. 1.5% e. 2.0%

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