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How do you get to 4.3? Given the following rates, what is the default risk premium on the corporate bond? 30-year TBonds 3.8% 30-year Corporate

image text in transcribed How do you get to 4.3?

Given the following rates, what is the default risk premium on the corporate bond? 30-year TBonds 3.8% 30-year Corporate Bond 8.1% 3-month TBill 1.9% Expected inflation 0.8% (Round your answer to 1 decimal place (eg, 3.2% = 3.2) 4.3

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