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Bond Maturity Liquidity Default Risk YTM A 2 High Low 3.5% B 2 High High 4.5% C 8 High Low 5.5% D 8 Low High
Bond | Maturity | Liquidity | Default Risk | YTM |
A | 2 | High | Low | 3.5% |
B | 2 | High | High | 4.5% |
C | 8 | High | Low | 5.5% |
D | 8 | Low | High | 7.0% |
Based on the table above, what is the maturity risk premium?
1% | ||
2% | ||
0.5% |
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