Assume you make the following investment a 10000 investment


Assume you make the following investment: a $10,000 investment in a 10year T-bond that has a yield of 10.5% and A $20,000 investment in a 10 year corporate bond with an Baa rating and a yield of 13.7%. Based on this information, what is your estimate of the corporate bond's default risk premium?

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Financial Management: Assume you make the following investment a 10000 investment
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