[Solved] A Treasure bond that matures in 15 years

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A Treasure bond that matures in 15 years has a yield of 11%. A 15-year corporate bond has a yield of 15%. Assume that the

A Treasure bond that matures in 15 years has a yield of 11%.

A 15-year corporate bond has a yield of 15%.

Assume that the liquidity premium on the corporate bond is 1%.

What is the default risk premium on the corporate bond?

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