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 0.4%. What is the default risk premium on the corporate bond? Round your answer to one decimal place.
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Venture Capital And The Finance Of Innovation
Authors: Andrew Metrick
1st Edition
0470074280, 9780470074282
