Question: 3. Problem 6.04 (Default Risk Premium) answer to two decimal places. % 3. Problem 6.04 (Default Risk Premium) eBook A Treasury bond that matures in

3. Problem 6.04 (Default Risk Premium) eBook A Treasury bond that matures

3. Problem 6.04 (Default Risk Premium) answer to two decimal places. %

3. Problem 6.04 (Default Risk Premium) eBook A Treasury bond that matures in 10 years has a yield of 4.75%. A 10-year corporate bond has a yield of 9.25%. Assume that the liquidity premium on the corporate bond is 0.60%. What is the default risk premium on the corporate bond? Round your answer to two decimal places.

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