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Assume you make the following investments: - A $10,000 investment in a 10-year T-bond that yields 9.00%, and - A $20,000 investment in a 10-year

image text in transcribed Assume you make the following investments: - A $10,000 investment in a 10-year T-bond that yields 9.00%, and - A $20,000 investment in a 10-year corporate bond with an A rating and a yield of 10.70% Based on this information, and the knowledge that the difference in liquidity risk premiums between the two bonds is 0.30%, what is your estimate of the corporate bond's default risk premium? 1.96% 1.70% 1.40% 2.38%

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