Question
The 15 year Treasury bonds are yielding 4.75% while a 10 year AA rated corporate bond yields 8.25%. The maturity risk premium of this Treasury
The 15 year Treasury bonds are yielding 4.75% while a 10 year AA rated corporate bond yields 8.25%. The maturity risk premium of this Treasury Bond is 0.35%. If the liquidity premium and default risk premium on this corporate bond is 0.75% and 1.25% respectively, calculate its maturity risk premium.
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Finance Introduction To Institutions Investments And Management
Authors: Ronald W. Melicher, Edgar A. Norton
12th Edition
0471675792, 9780471675792
