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help! Suppose 10-year U.S. Treasury bonds (T-bonds) have a yield of 3.15% and 10-year corporate bonds yield 4.65%. Also, corporate bonds have a 0.20% liquidity
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Suppose 10-year U.S. Treasury bonds (T-bonds) have a yield of 3.15% and 10-year corporate bonds yield 4.65%. Also, corporate bonds have a 0.20% liquidity premium versus a zero liquidity premium for Treasury bonds, and the maturity risk premium on both Treasury and corporate 10-year bonds is 0.65%. What is the default risk premium on corporate bonds? O 1.50% 1.15% O 1.30% 0.65% Step by Step Solution
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