A treasury bond that matures in 10 years has a yield of 4 a


A Treasury bond that matures in 10 years has a yield of 4%. A 10-year corporate bond has a yield of 8%. Assume that the liquidity premium on the corporate bond is 0.8%. What is the default risk premium on the corporate bond? Round your answer to two decimal places.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: A treasury bond that matures in 10 years has a yield of 4 a
Reference No:- TGS01413140

Expected delivery within 24 Hours