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ebook A company's 5-year bonds are yielding 9% per year. Treasury bonds with the same maturity are yielding 4.2% per year, and the real risk

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ebook A company's 5-year bonds are yielding 9% per year. Treasury bonds with the same maturity are yielding 4.2% per year, and the real risk free rate (r) is 2.15%. The average inflation premium is 1.65%, and the maturity risk premium is estimated to be 0.1 (t.1%, where t number of years to maturity. If the liquidity premium is 0.8%, what is the default risk premium on the corporate bonds 7 Round your answer to two decimal places

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