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Question 2 4 pts 5-year bonds yield 7% and 5-year T-bonds yield 3.7%. The liquidity premium for the corporate bonds is LP = 0.22%
Question 2 4 pts 5-year bonds yield 7% and 5-year T-bonds yield 3.7%. The liquidity premium for the corporate bonds is LP = 0.22% versus zero for T-bonds, and the maturity risk premium for all bonds is the same. What is the default risk premium (DRP) on the bonds? (Express your answer as a percent and round your answer to two decimal places.)
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