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A T-bond that matures in 9 years has a yield of 5%. A 9-yearcorporate bond has a yield of 8%. Assume that the liquidity premiumon

A T-bond that matures in 9 years has a yield of 5%. A 9-yearcorporate bond has a yield of 8%. Assume that the liquidity premiumon the corporate bond is 1%. What is the default risk premium onthe co 2 answers

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