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Please, show work. Thanks! Finance 201 Ch. 6 Exercise: Suppose 10-year T bonds have a yield of 5.30% and 10-year corporate bonds yield 6.75%. Also,

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Finance 201 Ch. 6 Exercise: Suppose 10-year T bonds have a yield of 5.30% and 10-year corporate bonds yield 6.75%. Also, corporate bonds have a 0.25% liquidity premium versus a zero liquidity premium for T-bonds, and the maturity risk premium on both Treasury and corporate 10-years bonds is 1.15%, what is the default risk premium on corporate bonds? 1. Formula: rar +IP+DRP+LP+MRP

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