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Exit Fullscreen The yields on a 5-year Treasury bond and a 5-year corporate bond are 4.5% and 5.8% respectively. Assume that the liquidity premium on

Exit Fullscreen The yields on a 5-year Treasury bond and a 5-year corporate bond are 4.5% and 5.8% respectively. Assume that the liquidity premium on the corporate bond is 0.5 percent. What is the default risk premium on the corporate bond

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