Question
Question 7 If 30-year T-bonds have a yield of 7.2%, 30-year corporate bonds yield 9.9%, the maturity risk premium on all 30-year bonds is 1.6%,
Question 7 If 30-year T-bonds have a yield of 7.2%, 30-year corporate bonds yield 9.9%, the maturity risk premium on all 30-year bonds is 1.6%, and corporate bonds have a 0.6% liquidity premium versus a zero liquidity premium for T-bonds, what is the default risk premium on the corporate bond?
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Introduction To Finance Markets, Investments, And Financial Management
Authors: Ronald W Melicher, Edgar Norton
13th Edition
0470128925, 9780470128923
