A treasury bond that matures in 10 years has a yield of 45

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A Treasury bond that matures in 10 years has a yield of 4.5%. A 10-year corporate bond has a yield of 10%. Assume that the liquidity premium on the corporate bond is 0.75%. What is the default risk premium on the corporate bond? Round your answer to two decimal places. %

Reference no: EM13607129

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