What is the ten year AA-rated corporate bond yields

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Suppose AA-rated 10-year corporate bonds need a default risk premium of 1.25%. Also, these corporate bonds have a 0.75% liquidity premium and the maturity risk premium on both Treasury and corporate 10-year bonds is 1.2%. Suppose 10-year T-bonds have a yield of 5.30%. What is the 10-year AA-rated corporate bond yields?

Reference no: EM13934815

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