Cet's look at a corporate bond. The practice in computing the cash flows for such a bond is to that the issuer will not default and to project the cash flows in the same way as for a U.S. Treasury security. While the risk of default is ignored in projecting the cash flows, it is taken into :onsideration in the valuation process by discounting the cash flows at a higher interest rate than comparable maturity U.S. Treasury security. So, for example, if a corporate bond with 25 years