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DEFAULT RISK PREMIUM A Treasury bond that matures in 10 years has a yield of 5.5%. A 10-year corporate bond has a yield of 9.5%.
DEFAULT RISK PREMIUM A Treasury bond that matures in 10 years has a yield of 5.5%. A 10-year corporate bond has a yield of 9.5%. Assume that the liquidity premium on the corporate bond is 0.65%. What is the default risk premium on the corporate bond? Round your answer to two decimal places. %
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