Question: Question 29 3 pts A Treasury security that matures in 9 years yields 8%. A corporate bond that matures in 9 years yields 10.4%. If

 Question 29 3 pts A Treasury security that matures in 9

Question 29 3 pts A Treasury security that matures in 9 years yields 8%. A corporate bond that matures in 9 years yields 10.4%. If the liquidity premium on the corporate bond is 60 bps, what is the default risk premium? Assume the expectations theory does NOT hold. 9.0% O 0.9% 0 2.4% 10.4% O 1.8%

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