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The 15 year Treasury bonds are yielding 3.75% while a 15 year AAA rated corporate bond yields 6.5%. If the liquidity premium on this corporate
The 15 year Treasury bonds are yielding 3.75% while a 15 year AAA rated corporate bond yields 6.5%. If the liquidity premium on this corporate bond is 0.75%, what is its default risk premium?
| 2%. | ||
| 2.75%. | ||
| 1.75%. | ||
| 0%. |
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