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A treasury bond that matures in 10 years has a yield of 4 a

Default Risk Premium

A Treasury bond that matures in 10 years has a yield of 4%. A 10-year corporate bond has a yield of 9%. Assume that the liquidity premium on the corporate bond is 0.55%. What is the default risk premium on the corporate bond? Round your answer to two decimal places.

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Finance Basics: A treasury bond that matures in 10 years has a yield of 4 a

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