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May 27, 2015

Homework Help: financial management

Posted by julie on Tuesday, October 16, 2007 at 9:50pm.

A treasury bond that matures in 10 years has a yield of 6%. A 10 year corporate bond has a yield of 9%. assume that the liquidity premium on the corporate bond is 0.5%. What is the default risk premium on the corporate bond?

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