Liquidity premium versus a zero liquidity premium for t-bond


If 10-year T-bonds have a yield of 3.70%, 10-year corporate bonds yield 7.30%, the maturity risk premium on all 10-year bonds is 0.90%, and corporate bonds have a 0.2% liquidity premium versus a zero liquidity premium for T-bonds, what is the default risk premium on the corporate bond?

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Finance Basics: Liquidity premium versus a zero liquidity premium for t-bond
Reference No:- TGS055704

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