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Default risk premium on the corporate bond

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If 10-year T-bonds have a yield of 6.5%, 10-year corporate bonds yield 8.5%, the maturity risk premium on all 10-year bonds is 1.5%, and corporate bonds have a 0.2% liquidity premium versus a zero liquidity premium for T-bonds, what is the default risk premium on the corporate bond?

Reference no: EM132785302

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