Question: hi cancyou please solve this showing work and formulas! thanks u ation Tate 2-9. (Default risk premium) At present, 20-year Treasury bonds are yielding 5.1%,
hi cancyou please solve this showing work and formulas! thanks
u ation Tate 2-9. (Default risk premium) At present, 20-year Treasury bonds are yielding 5.1%, while some 20-year corporate bonds that you are interested in are yielding 9.1% Assuming that the maturity-risk premium on both bonds is the same and that the liquidity-risk premium Treasury bonds, what is the default-risk premium on the corporate bonds is 0.25 % while it is 0.0% on the on the corporate bonds
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