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The Blue Hole Company situated in west New Providence, Nassauhas just issued a series of bonds with 5- through 10-year maturities.The company's default risk is

The Blue Hole Company situated in west New Providence, Nassauhas just issued a series of bonds with 5- through 10-year maturities.The company's default risk is 0.5% on 5-year bonds, and grows by 0.2% for each year that's added to the bond's term.Blue Hole's liquidity risk is 1.0% on 5-year bonds, and grows by 0.1% for each additional year of term.Maturity risk on all bonds is 0.2% on 1-year bonds, and grows by 0.1% for each additional year of term.What is the difference between the interest rates on Blue Hole's bonds and those on federal government bonds of like terms?(10 points)

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