Question: Keys Corporation's 5 - year bonds yield 6 . 2 0 % and 5 - year T - bonds yield 4 . 4 0 %
Keys Corporation's year bonds yield and year Tbonds yield The real riskfree rate is the inflation premium for year bonds is the liquidity premium for Keys' bonds is versus zero for Tbonds, and the maturity risk premium for all bonds is found with the formula MRP where number of years to maturity. What is the default risk premium DRP on Keys' bonds?
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