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Both please they're similar i cant figure them out 3. A Treasury bond that matures in 10 years has a yield of 4.00%. A 10-year
Both please they're similar i cant figure them out
3. A Treasury bond that matures in 10 years has a yield of 4.00%. A 10-year corporate bond has a yield of 9.75%. Assume that the liquidity premium on the corporate bond is 0.50%. What is the default risk premium on the corporate bond? Round your answer to two decimal places. 4. The real risk-free rate is 2.5% and inflation is expected to be 2.75% for the next 2 years. A 2-year Treasury security yields 6.05%. What is the maturity risk premium for the 2-year security? Round your answer to one decimal place Step by Step Solution
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