A treasury bond that matures in 10 years has a yield of 6


A Treasury bond that matures in 10 years has a yield of 6 percentage. A 10-year corporate bond has a yield of 8 percentage.

Assume that the liquidity premium on the corporate bond is 0.5 percentage. What is the default risk premium on the corporate bond

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Financial Management: A treasury bond that matures in 10 years has a yield of 6
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