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A Treasury bond that matures in 1 0 years has a yield of 6 . 0 0 % A 1 0 - year corporate bond

A Treasury bond that matures in

10

years has a yield of

6.00 %

10 -

year corporate bond has a yield of

10.00 %

Assume that the liquidity premium on the corporate bond is

0.50

What is the default risk premium on the corporate bond? Round your answer to two decimal places

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