Question: Estimate the default premium and the maturity premium given the following three investment opportunities: A Treasury bill with a current interest rate of 3.5%, a

Estimate the default premium and the maturity premium given the following three investment opportunities: A Treasury bill with a current interest rate of 3.5%, a Treasury bond with a twenty year maturity with a current interest rate of 5.5%, a AAA twenty year corporate bond with an interest rate of 7.0%?

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