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Assume you make the following investment: a $10,000 investment in a 10year T-bond taht has a yield of 10.5% and A $20,000 investment in a
Assume you make the following investment: a $10,000 investment in a 10year T-bond taht has a yield of 10.5% and A $20,000 investment in a 10 year corporate bond with an Baa rating and a yield of 13.7%. Based on this information, what is your estimate of the corporate bond's default risk premium?
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