A Treasury bond that matures in 9 years has a yield of 8.00%. A 9-year corporate bond
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A Treasury bond that matures in 9 years has a yield of 8.00%. A 9-year corporate bond has a yield of 8.25%. Assume that the liquidity premium on the corporate bond is 0.40%. What is the default risk premium on the corporate bond?
Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1439078082
4th Edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham
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