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find the default risk premium on the bond Suppose 5-year T-bonds have a yield of 2.55% and 5-year corporate bonds yield 3.95%. Also, corporate bonds
find the default risk premium on the bond
Suppose 5-year T-bonds have a yield of 2.55% and 5-year corporate bonds yield 3.95%. Also, corporate bonds have a 0.12% liquidity premium versus a zero liquidity premium for T-bonds, and the maturity risk premium on both Treasury and corporate 5-year bonds is 0.85%. What is the default risk premium on corporate bondsStep by Step Solution
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