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Interest Rates 2 A Treasury bond that matures in 10 years has a yield of 3%. A 10-year corporate bond has a yield of 9%.

Interest Rates 2

A Treasury bond that matures in 10 years has a yield of 3%. A 10-year corporate bond has a yield of 9%. Assume that the liquidity premium on the corporate bond is 0.4%. What is the default risk premium on the corporate bond? Round your answer to two decimal places.

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