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The estimate annual default rate (probability) for a non-callable, liquid, corporate bond is 4%. The estimated recovery rate is 60%. The market yield for a

The estimate annual default rate (probability) for a non-callable, liquid, corporate bond is 4%. The estimated recovery rate is 60%. The market yield for a Treasury bond with a similar maturity to the corporate bond is 2.0%. What is the best estimate of the corporate bond yield?

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