Question
A Treasury bond that matures in 10 years has a yield of 4.75%. A 10-year corporate bond has a yield of 8.25%. Assume that the
| A Treasury bond that matures in 10 years has a yield of 4.75%. A 10-year corporate bond has a yield of 8.25%. Assume that the liquidity premium on the corporate bond is 0.65%. What is the default risk premium on the corporate bond? Round your answer to two decimal places. % |
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Financial Performance
Authors: Marc Bertoneche, Rory Knight
1st Edition
0750640111, 978-0750640114
