A Treasury bond that matures in 10 years has a yield of 6%. A 10-year corporate bond

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A Treasury bond that matures in 10 years has a yield of 6%. A 10-year corporate bond has a yield of 8%. 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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Fundamentals of Financial Management

ISBN: 978-0324664553

Concise 6th Edition

Authors: Eugene F. Brigham, Joel F. Houston

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Question Posted: Oct 05, 2011 07:56 AM

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A Treasury bond that matures in 10 years has a yield of 6%. A 10-year corporate bond

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Fundamentals of Financial Management

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