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The maturity risk premium on 10-year corporate, as well as 10-year treasury bonds is 2%, the liquidity premium on corporate bonds is 1% and 10-year

The maturity risk premium on 10-year corporate, as well as 10-year treasury bonds is 2%, the liquidity premium on corporate bonds is 1% and 10-year treasuries currently yield 4%. What is the default risk premium on a BBB-rated 10-year corporate bond that has a yield-to-maturity of 8%? A. more information is required B. 1% C. 2% D. 3%

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