Question
A Treasury bond that matures in 10 years has a yield of 5.75%. A 10-year corporate bond has a yield of 9.25%. Assume that the
A Treasury bond that matures in 10 years has a yield of 5.75%. A 10-year corporate bond has a yield of 9.25%. Assume that the liquidity premium on the corporate bond is 0.30%. What is the default risk premium on the corporate bond? Round your answer to two decimal places.
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International Project Finance
Authors: Felix I. Lessambo
1st Edition
3030963896, 978-3030963897
