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A Treasury bond that matures in 10 years has a yield of 5.25%. 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 5.25%. 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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Public Finance An International Perspective
Authors: Joshua E. Greene
1st Edition
9814365041, 978-9814365048
