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Suppose that the interest rate on a 10-year U.S. Treasury bond is 4.5 percent and that the interest rate on a 10-year AAA corporate bond
Suppose that the interest rate on a 10-year U.S. Treasury bond is 4.5 percent and that the interest rate on a 10-year AAA corporate bond is 4.0 percent. Which of the following would be a good estimate of the liquidity premium required by corporate bond holders? 1.0 percent O zero O 0.5 percent 1.5 percent
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