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A Treasury bond which matures in 20 years has a yield of 9 percent. A 20-year corporate bond has a yield of 11 percent. Assume
A Treasury bond which matures in 20 years has a yield of 9 percent. A 20-year corporate bond has a yield of 11 percent. Assume that the liquidity premium on the corporate bond is 1.0 percent. What is the default risk premium on the corporate bond?
A. a. 0.50%
B. b. 2.00%
C. c. 1.00%
D. d. 1.25%
E. e. 1.60%
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Banking On Freedom Black Women In U.S. Finance Before The New Deal
Authors: Shennette Garrett-Scott
1st Edition
0231183917, 978-0231183918
