eddrekas3254 eddrekas3254
  • 06-12-2022
  • Business
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if 10-year t-bonds have a yield of 6.5%, 10-year corporate bonds yield 9.6%, the maturity risk premium on all 10-year bonds is 1.3%, and corporate bonds have a 0.4% liquidity premium versus a zero liquidity premium for t-bonds, what is the default risk premium on the corporate bond?

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