Assume that the liquidity premium on the corporate bond is


A Treasury bond that matures in 10 years has a yield of 4.75%. A 10-year corporate bond has a yield of 6.95%.

Assume that the liquidity premium on the corporate bond is 0.6%. What is the default risk premium on the corporate bond?

Your answer should be between 0.74 and 2.52, rounded to 2 decimal places, with no special characters.

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Financial Management: Assume that the liquidity premium on the corporate bond is
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