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Question 23 (1 point) 23. If 10-year T-bonds have a yield of 6.1 % , 10- year corporate bonds yield 8.6 %, the maturity risk

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Question 23 (1 point) 23. If 10-year T-bonds have a yield of 6.1 % , 10- year corporate bonds yield 8.6 %, the maturity risk premium on all 10-year bonds is 1.3 %, and corporate bonds have a 0.4 % liquidity premium versus a zero liquidity premium for T-bonds, what is the default risk premium on the corporate bond? a) 0.8% b) 3.4% c) 2.1 % d) 1.6% e) 2.5%

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