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If 10-year T-bonds yield 5.20 percent, 10-year corporate bonds yield 10.50 percent, the maturity risk premium on all 10-year bonds is 1.10 percent, and the

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If 10-year T-bonds yield 5.20 percent, 10-year corporate bonds yield 10.50 percent, the maturity risk premium on all 10-year bonds is 1.10 percent, and the liquidity risk premiums for corporate and Treasury bonds are 0.70 percent and 0.00 percent, respectively, what must be the default risk premium on the corporate bond? Your Answer: Answer units Previous Page Next Page Page 13 of 25

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