What is the default risk premium on the corporate bond


A Treasury bond that matures in 10 years has a yield of 6%. A 10-year corporate bond has a yield of 7%. Assume that the liquidity premium on the corporate bond is 0.35%. What is the default risk premium on the corporate bond? Round your answer to two decimal places.

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Finance Basics: What is the default risk premium on the corporate bond
Reference No:- TGS0725100

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