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Intro 10-year Treasury-bonds yield 2.5% and 10 -year corporate bonds yield 7.15%. The maturity risk premium on both 10-year Treasury and corporate bonds is 1.3%.

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Intro 10-year Treasury-bonds yield 2.5% and 10 -year corporate bonds yield 7.15%. The maturity risk premium on both 10-year Treasury and corporate bonds is 1.3%. Corporate bonds have a 0.65% liquidity premium, while T-bonds have a zero liquidity premium. Part 1 What is the default risk premium on corporate bonds

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