Question: please round answer to one decimal place and answer the question correctly (Calculating the default-risk premium) At present, 10-year Treasury bonds are yielding 4.1% while
(Calculating the default-risk premium) At present, 10-year Treasury bonds are yielding 4.1% while a 10-year corporate bond is yielding 6.7%. If the liquidity premium on the corporate bond is 0.8%, what is the corporate bond's default-risk premium? Hints: Consider that the default-risk premium and liquidity premium of the 10-year Treasury bond are equal to zero The corporate bond's default-risk premium is %. (Round to one decimal place.)
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