What is the default risk premium on the corporate


1. A us treasury bond that matures in ten years has a yield of 6%. a ten year corporate bond has a yield of 8% assume the liquidity premium on the corporate bond is .5% what is the default risk premium on the corporate bond?

2. Which type of business, a pharmaceutical firm or an electric utility, would benefit more from improving ROIC than from increasing growth? Why?

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Financial Management: What is the default risk premium on the corporate
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