Question: At present, 10-year Treasury bonds are yielding 4% while a 10 year corporate bond is yielding 6.8%. If the liquidity-risk premium on the corporate bond
At present, 10-year Treasury bonds are yielding 4% while a 10 year corporate bond is yielding 6.8%. If the liquidity-risk premium on the corporate bond is 0.4%, what is the corporate bonds default-risk premium?
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