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If 10-year T-bonds have a yield of 6.2, 10-year corporate bonds yield 10.0, the maturity risk premium on all 10-year bonds is 1.3, and corporate
If 10-year T-bonds have a yield of 6.2, 10-year corporate bonds yield 10.0, the maturity risk premium on all 10-year bonds is 1.3, and corporate bonds have a 0.18 liquidity premium versus a zero liquidity premium for T-bonds, what is the default ris premium on the corporate bond? 3.50% 3.60% 3.70% 3.80%
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