Question
A Treasury bond that matures in 10 years has a yield of 7%. A 10-year corporate bond has a yield of 9%. Assume that the
A Treasury bond that matures in 10 years has a yield of 7%. A 10-year corporate bond has a yield of 9%. Assume that the liquidity premium on the corporate bond is 1.5%. What is the default risk premium on the corporate bond? Round to ONE decimal place.
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Real Estate Finance And Investments
Authors: William Brueggeman, Jeffrey Fisher
16th Edition
1259919684, 978-1259919688
