A treasury bond that matures in 10 years has a yield of 6 a


A Treasury bond that matures in 10 years has a yield of 6%. A 10-year corporate bond has a yield of 8.75%. Assume that the liquidity premium on the corporate bond is 0.3%. What is the default risk premium on the corporate bond? Round your answer to two decimal places.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: A treasury bond that matures in 10 years has a yield of 6 a
Reference No:- TGS01156620

Expected delivery within 24 Hours