Question
(Calculating the default-risk premium) At present, 10-year Treasury bonds are yielding3.7 % while a 10-year corporate bond is yielding 6.6%. If the liquidity-risk premium on
(Calculating the default-risk premium) At present, 10-year Treasury bonds are yielding3.7 % while a 10-year corporate bond is yielding 6.6%. If the liquidity-risk premium on the corporate bond is 0.6%, 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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Behavioral Finance And Capital Markets
Authors: A. Szyszka
5th Edition
1137338741, 9781137338747
