A 10-year T-bond has a yield of 6%. A 10-year corporate bond with a rating of AA

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A 10-year T-bond has a yield of 6%. A 10-year corporate bond with a rating of AA has a yield of 7.5%. If the corporate bond has excellent liquidity, what is an estimate of the corporate bond’s default risk premium?

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Intermediate Financial Management

ISBN: 9781337395083

13th Edition

Authors: Eugene F. Brigham, Phillip R. Daves

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