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Suppose 10-year T-bonds have a yield of 4.50% and 10-yearcorporate bonds yield 7.30%. Also, corporate bonds have a 0.25%liquidity premium versus a zero liquidity premium

Suppose 10-year T-bonds have a yield of 4.50% and 10-yearcorporate bonds yield 7.30%. Also, corporate bonds have a 0.25%liquidity premium versus a zero liquidity premium for T-bonds, andthe maturit 2 answers

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