A Treasury bond that matures in 1 0 years has a yield of 5 . 5 0

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Question:

A Treasury bond that matures in

10

years has a yield of

5.50 % .

10 -

year corporate bond has a yield of

8.25 % .

Assume that the liquidity premium on the corporate bond is

0.35 % .

What is the default risk premium on the corporate bond? Round your answer to two decimal places.

Posted Date: May 18, 2024 07:00 PM

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A Treasury bond that matures in 1 0 years has a yield of 5 . 5 0

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