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A Treasury bond that matures in 10 years has a yield of 6%. A 10 -year corporate bond has a yield of 9%. Assume that
A Treasury bond that matures in 10 years has a yield of 6%. A 10 -year corporate bond has a yield of 9%. Assume that the liquidity premium on the corporate bond is 0.5%. What is the default risk premium on the corporate bond? Renfro Rentals has issued bonds that have a 10\% coupon rate, payable semiannually. The bonds mature in 8 years, have a face value of $1,000, and a yield to maturity of 8.5%. What is the price of the bonds
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