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A Treasury security that matures in 8 years yields 9%. A corporate bond that matures in 8 years yields 10.4%. If the liquidity premium on

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A Treasury security that matures in 8 years yields 9%. A corporate bond that matures in 8 years yields 10.4%. If the liquidity premium on the corporate bond is.5%, what is the default risk premium? Assume the expectations theory does NOT hold. It can not be determined from the information given. 9% 10.4% O 0.9%

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