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 9%. 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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Corporate Finance A Focused Approach

ISBN: 978-1439078082

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Authors: Michael C. Ehrhardt, Eugene F. Brigham

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Question Posted: Sep 22, 2011 05:18 PM

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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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Corporate Finance A Focused Approach

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