A treasury bond that matures in 10 years has a yield of 45


A Treasury bond that matures in 10 years has a yield of 4.5%. A 10-year corporate bond has a yield of 7.5%. Assume that the liquidity premium on the corporate bond is 0.25%. What is the default risk premium on the corporate bond?

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Finance Basics: A treasury bond that matures in 10 years has a yield of 45
Reference No:- TGS0622515

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