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Default risk premium on the corporate bond

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Reference no: EM132661930

A Treasury bond that matures in 10 years has a yield of 4.75%. A 10-year corporate bond has a yield of 7.25%. 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: EM132661930

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