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Current rate on mhm corp 6-year corporate bond

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The Wall Street Journal reports that the current rate on 6-year Treasury bonds is 5.95 percent, the rate on 13-year Treasury bonds is 6.35 percent, and the rate on a 13-year corporate bond issued by MHM Corp. is 7.55 percent. Assume that the maturity risk premium is zero. If the default risk premium and liquidity risk premium on a 6-year corporate bond issued by MHM Corp. are the same as those on the 13-year corporate bond, calculate the current rate on MHM Corp.'s 6-year corporate bond. (Round your answer to 2 decimal places.)

Reference no: EM132384771

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