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

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A Treasury bond that matures in 10 years has a yield of 6 percent. A 10-year corporate bond has a yield of 8 percent. Assume that the liquidity premium on the corporate bond is 0.5 percent. What is the default risk premium on the corporate bond?

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Financial management theory and practice

ISBN: 978-0324422696

12th Edition

Authors: Eugene F. Brigham and Michael C. Ehrhardt

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Question Posted: Mar 16, 2010 03:15 AM

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

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Financial management theory and practice

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