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If 9-year T-bonds have a yield of 2.8%, 9-year A-rated corporate bonds yield 4.8%, the maturity risk premium on all 9-year bonds is 1.2%, and
If 9-year T-bonds have a yield of 2.8%, 9-year A-rated corporate bonds yield 4.8%, the maturity risk premium on all 9-year bonds is 1.2%, and A-rated corporate bonds have a 0.6% liquidity premium versus a zero liquidity premium for T-bonds, what is the default risk premium on the corporate bond?
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