Also corporate bonds have a 025 liquidity premium versus a, Finance Basics

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Also corporate bonds have a 025 liquidity premium versus a

Suppose 10-year T-bonds have a yield of 5.30% and 10-year corporate bonds yield 6.75%. Also, corporate bonds have a 0.25% liquidity premium versus a zero liquidity premium for T-bonds, and the maturity risk premium on both Treasury and corporate 10-year bonds is 1.15%. What is the default risk premium on corporate bonds?

a. 1.08%

b. 1.20%

c. 1.32%

d. 1.45%

e. 1.60%

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Finance Basics: Also corporate bonds have a 025 liquidity premium versus a

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Finance Basics: Also corporate bonds have a 025 liquidity premium versus a

Reference No:- TGS0598988

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Also corporate bonds have a 025 liquidity premium versus a

Reference No:- TGS0598988

Recent Questions Asked Finance Basics

Q : Youve observed the following returns on crash-n-burn

Q : How is the national cancer institutersquos ldquopatient

Q : For a first-order reaction the half-life is constant it

Q : Two red blood cells each have a mass of 905 times 10-14 kg

Q : Also corporate bonds have a 025 liquidity premium versus a

Q : What is the most effective means of incoming and outgoing

Q : If you have chosen corn as a commodity how would you find

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