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The Wall Street Journal reports that the current rate on 10-year Treasury bonds is 7.50 percent, on 20-year Treasury bonds is 8.10. percent, and
The Wall Street Journal reports that the current rate on 10-year Treasury bonds is 7.50 percent, on 20-year Treasury bonds is 8.10. percent, and on a 20-year corporate bond issued by MHM Corporation is 9.25 percent. Assume that the maturity risk premium is zero. If the default risk premium and liquidity risk premium on a 10-year corporate bond issued by MHM Corporation are the same as those on the 20-year corporate bond, calculate the current rate on MHM Corporation's 10-year corporate bond. Note: Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34). Current rate % 200
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