Question
A Treasury bond that matures in 10 years has a yield of 4.75%. A 10-year corporate bond has a yield of 7.25%. 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 7.25%. 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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Economics For Financial Markets
Authors: Brian Kettell
1st Edition
0750653841, 978-0750653848
