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

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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.

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

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