Suppose that in March 2016, Wong & Sons Corporation issues a bond that pays

5.5%

. At the same time, the US Treasury, when it issues deb interest rate of

2.5%

.\ Based on the formula for the default risk premium,\ must pay a DRP of because the rate on

_(z )

is considered the risk-free rate.

Suppose that in March 2016, Wong \& Sons Corporation issues a bond that pays 5.5\%. At the same time, the US Treasury, when it issues det interest rate of 2.5%. Based on the formula for the default risk premium, on must pay a DRP of is considered the risk-free rate. because the rate