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If 10-year T-bonds have a yield of 6.1%, 10-year corporate bonds yield 8.0%, the maturity risk premium on all 10-year bonds is 1.3%, and corporate
If 10-year T-bonds have a yield of 6.1%, 10-year corporate bonds yield 8.0%, the maturity risk premium on all 10-year bonds is 1.3%, and corporate bonds have a 0.4% liquidity premium versus a zero liquidity premium for T-bonds, what is the default risk premium on the corporate bond? O 1.40% O 1.50% O 1.43% 1.30% O 1.60%
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