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Hint: the answer is not 1.1% if you get that, you are wrong! Five-year Treasury bonds are yielding 5.2% per year and a five-year corporate
Hint: the answer is not 1.1% if you get that, you are wrong! Five-year Treasury bonds are yielding 5.2% per year and a five-year corporate bond is yielding 7.1% per year. If the corporate bond's yield includes a 0.3% per year liquidity premium and a 0.5% per year maturity premium, what is its default premium? 1.4% 1.8% 1.6% 2.1% 1.9%
Hint: the answer is not 1.1% if you get that, you are wrong!
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