Question: At present, 10- year Treasury bonds are yielding 4% while a 10- year corporate bond is yielding 6.8%. If the liquidity- risk premium on the

At present, 10- year Treasury bonds are yielding 4% while a 10- year corporate bond is yielding 6.8%. If the liquidity- risk premium on the corporate bond is 0.4%, what is the corporate bond’s default- risk premium?

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