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Financial Management (FN36102_F18) Question 5 Not complete Marked out of 1.00 You are comparing a 10-year corporate bond for a firm with a ticker ABC

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Financial Management (FN36102_F18) Question 5 Not complete Marked out of 1.00 You are comparing a 10-year corporate bond for a firm with a ticker ABC and a 10-year corporate bond for the same firm with ticker XYZ. Other firms of the same risk-class as firm ABC have a default risk premium of 2.50%, and a liquidity risk premium of 1.90%. The current return on a 10-year treasury is 3.50%. The maturity premium on the 10-year treasury is 2.00%, what is the default-risk premium for XYZ if the yield to maturity of their bonds is 11.00%. Flag question Select one: O a. 9.90% O b.-1.1096 O c. 3.60% O d. 1.10% Check Previous page Next page Return to: Week 10: Return

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