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Suppose 1 0 - year Treasury bonds have a yield of 5 . 2 5 % and 1 0 - year corporate bonds yield 6

Suppose 10-year Treasury bonds have a yield of 5.25% and 10-year corporate bonds yield 6.5%. Also, corporate bonds have a 0.4% liquidity premium versus a zero liquidity premium for T-bonds, and the maturity risk premium on both Treasury and corporate 10-year bonds is .9%. What is thedefault risk premiumon corporate bonds?

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