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eBook Problem 6-4 Default Risk Premium A Treasury bond that matures in 10 years has a yield of 4%. A 10-year corporate bond has a

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eBook Problem 6-4 Default Risk Premium A Treasury bond that matures in 10 years has a yield of 4%. A 10-year corporate bond has a yield of 7.5%. 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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