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Homework: ch 2 Save Score: 0 of 1 pt 6 of 12 (5 complete) HW Score: 41.67%, 5 of 12 pts Problem 2-9 (similar to)

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Homework: ch 2 Save Score: 0 of 1 pt 6 of 12 (5 complete) HW Score: 41.67%, 5 of 12 pts Problem 2-9 (similar to) IE Question Help (Default-risk premium) At present, 20-year Treasury bonds are yielding 5.4% while some 20-year corporate bonds that you are interested in are yielding 9.9%. Assuming that the maturity-risk premium on both bonds is the same and that the liquidity risk premium on the corporate bonds is 0.27% while it is 0.0% on the Treasury bonds, what is the default-risk premium on the corporate bonds? Note that a Treasuty security should have no default-risk premium The default-risk premium on the corporate bonds is %. (Round to two decimal places.)

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