Question: 3. Problem 6.04 (Default Risk Premium) ELE eBook A Treasury bond that matures in 10 years has a yield of 5.75%. A 10-year corporate bond

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

3. Problem 6.04 (Default Risk Premium) ELE eBook A Treasury bond that matures in 10 years has a yield of 5.75%. A 10-year corporate bond has a yield of 8.75%. Assume that the liquidity premium on the corporate bond is 0.65%. What is the default risk premium on the corporate bond? Round your answer to two decimal places. %

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