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A Treasury bond that matures in 10 years has a yield of 5.00%. A 10-year corporate bond has a yield of 9.00%. Assume that the

A Treasury bond that matures in 10 years has a yield of 5.00%. A 10-year corporate bond has a yield of 9.00%. Assume that the liquidity premium on the corporate bond is 0.40% What is the default risk premium on the corporate bond? 4.0% 44% 3.6% 0.4%

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