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Need help please! Thanks Assume you make the following investments: - A $10,000 investment in a 10 -year T-bond that yields 6.50%, and - A
Need help please! Thanks
Assume you make the following investments: - A $10,000 investment in a 10 -year T-bond that yields 6.50%, and - A $20,000 investment in a 10 -year corporate bond with an A rating and a yield of 8.20% Based on this information, and the knowledge that the difference in liquidity risk premiums between the two bonds is 0.40%, what is your estimate of the corporate bond's default risk premium? 1.82% 1.30% 1.70% 2.21%Step by Step Solution
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