1. A 10-year Treasury yields 5%. The Liquidity premium of a 10 year corporate bond is 3.2% and that bond has a nominal rate of 10.2%.
What is the default risk premium of that corporate bond?
answer in % without the symbol
2. A 10-year corporate bond yields 11.4%. The liquidity premium is 1%, and the default risk premium is 2%. Inflation premium ofor 10 year bonds is 2.2%.
What is the nominal rate of a 10 year Treasury bond?
answer in % without the symbol