What is the default risk premium on this bond

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The YTM on a 10-year corporate bond is 11.6%. The real risk-free rate of interest is 3%. Inflation is expected to be a constant 4% for the foreseeable future. If the MRP is 0.1%(t - 1) and the liquidity premium is 0.5%, what is the default risk premium on this bond?

Reference no: EM131306430

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