Question: need help with this A T-bond that matures in 9 years has a yield of 6%. A 9-year corporate bond has a yield of 12.5%.

need help with this

A T-bond that matures in 9 years has a yield of 6%. A 9-year corporate bond has a yield of 12.5%. Assume that the liquidity premium on the corporate bond is 1.5%. What is the default risk premium on the corporate bond? Select one: O a. 5.0% Ob. 3.5% OC. 0.5% Od 1.0% O e 1.5%

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