D Question 14 1 pts Mid Quality Co.'s 30-year bonds yield 7.55%, and 30-year T-bonds yield...
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D Question 14 1 pts Mid Quality Co.'s 30-year bonds yield 7.55%, and 30-year T-bonds yield 2.55%. The real risk-free rate is r = -3.25%. The liquidity premium on High Quality Co.'s bonds is 1.05%. The maturity risk premium is found with the formula MRP (t 1 ) x 0.1% for all bonds, where t = number of years to maturity. What is the default risk premium (DRP) on High Quality Co.'s bonds? 6.85% 3.95% O 5.00% 2.90% O 3.60% = D Question 14 1 pts Mid Quality Co.'s 30-year bonds yield 7.55%, and 30-year T-bonds yield 2.55%. The real risk-free rate is r = -3.25%. The liquidity premium on High Quality Co.'s bonds is 1.05%. The maturity risk premium is found with the formula MRP (t 1 ) x 0.1% for all bonds, where t = number of years to maturity. What is the default risk premium (DRP) on High Quality Co.'s bonds? 6.85% 3.95% O 5.00% 2.90% O 3.60% =
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