Question: At present, 10-year Treasury bonds are yielding 3.5% while a10-year corporate bond is yielding 6.4%. If the liquidity-risk premium on the corporate bond is 0.6%,

At present, 10-year Treasury bonds are yielding 3.5% while a10-year corporate bond is yielding 6.4%. If the liquidity-risk premium on the corporate bond is 0.6%, what is the corporatebond's default-risk premium? Note that a Treasuty security should have no default-risk premium and liquidity-risk premium.

The corporate bonds default risk premium is __ % ?

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