Question: Please explain so I can understand how to do this in future. A Treasury bond that matures in 10 years has a yield of 7%.
A Treasury bond that matures in 10 years has a yield of 7%. A 10 -year corporate bond has a yield of 8%. Assume that the liquidity premium on the corporate bond is 0.8%. What is the default risk premium on the corporate bond? Round your answer to one decimal place. %
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