Question: Problem 4-5 Default Risk Premium A Treasury bond that matures in 10 years has a yield of 6%. A 10-year corporate bond has a yield

Problem 4-5 Default Risk Premium A Treasury bond that matures in

Problem 4-5 Default Risk Premium A Treasury bond that matures in 10 years has a yield of 6%. A 10-year corporate bond has a yield of 8%. Assume that the liquidity premium on the corporate bond is 0.4%, what is the default risk premium on the corporate bond? Round your answer to two decimal places

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