Question
(Calculating the default-risk premium) At present, 10-year Treasury bonds are yielding 3.9% while a 10-year corporate bond is yielding 6.6%. If the liquidity-risk premium
(Calculating the default-risk premium) At present, 10-year Treasury bonds are yielding 3.9% while a 10-year corporate bond is yielding 6.6%. If the liquidity-risk premium on the corporate bond is 0.7%, what is the corporate bond's default- risk premium? Note that a Treasuty security should have no default-risk premium and liquidity-risk premium
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
