Question
A Treasury bond that matures in 5 years has a yield of 38.00%. A 5-year corporate bond has a yield of 95.00%. Assume that the
A Treasury bond that matures in 5 years has a yield of 38.00%. A 5-year corporate bond has a yield of 95.00%. Assume that the liquidity premium on the corporate bond is 0.25%. What is the default risk premium on the corporate bond?
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N Hyman
8th Edition
0324259700, 978-0324259704
