Question: Path: P Words: QUESTION 4 Keys Corporation's 5-year bonds yield 6.20% and 5-year T-bonds yield 4,60%. The real risk-free rate is r* = 2.5%, the

Path: P Words: QUESTION 4 Keys Corporation's 5-year bonds yield 6.20% and 5-year T-bonds yield 4,60%. The real risk-free rate is r* = 2.5%, the inflation premium for 5-year bonds is IP = 1,50%, the liquidity premium for Keys' bonds is LP=0.8% versus zero for T-bonds and the maturity risk premium for all bonds is found with the formula MRP = (t - 1)*0.1%, where t = number of years to maturity. What is the default risk premium (DRP) on Keys' bonds? TTT Arial 3 (12pt) T I Words Path:p

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