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The Wall Street Journal reports that the current rate on 1 0 - year Treasury bonds is 8 . 2 0 percent, on 2 0
The Wall Street Journal reports that the current rate on year Treasury bonds is percent, on year Treasury bonds is percent, and on a year corporate bond issued by MHM Corp. is percent. Assume that the maturity risk premium is zero. If the default risk premium and liquidity risk premium on a year corporate bond issued by MHM Corp. are the same as those on the year corporate bond, calculate the current rate on MHM Corp.s year corporate bond. Round your answer to decimal places.
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