Question
A Treasury bond that matures in 10 years has a yield of 5.25%. A 10-year corporate bond has a yield of 10%. Assume that the
A Treasury bond that matures in 10 years has a yield of 5.25%. A 10-year corporate bond has a yield of 10%. Assume that the liquidity premium on the corporate bond is 0.35%. What is the default risk premium on the corporate bond? Round your answer to two decimal places.
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Dynamics Of International Finance
Authors: Ruchi Mehrotra Joshi
1st Edition
1685078389, 978-1685078386
