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If the 10 year maturity premium is 04 what interest rate

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You would like to issue a 10 year bond and anticipate that the market requires a 3% default risk premium, of which part of the issue would add 1% liquidly premium to the required interest rate.

The 10 year treasury rate is 2% and the TIPS rate is 0.4%.

If the 10 year maturity premium is 0.4%, what interest rate would you expect to pay on the issue?

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Finance Basics: If the 10 year maturity premium is 04 what interest rate

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