A treasury bond that matures in 10 years has a yield of 5 a


Default Risk Premium

A Treasury bond that matures in 10 years has a yield of 5%. A 10-year corporate bond has a yield of 8%. Assume that the liquidity premium on the corporate bond is 0.4%. 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 5 a
Reference No:- TGS01173922

Expected delivery within 24 Hours