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You are considering investing in a corporate bond with a 30 year maturity and you are trying to determine if it is going to provide
You are considering investing in a corporate bond with a 30 year maturity and you are trying to determine if it is going to provide an adequate return.As of April 17, 2020, the 30 year Treasury yield was 1.27%. You believe that a .7% default risk premium and a .1% liquidity premium are necessary for this bond.If this is the case, what yield would you need in order to purchase this bond? (Show your answer as a percentage with 2 decimal places, without a %. For example, 5.27.)
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