Question: The 15 year Treasury bonds are yielding 3.75% while a 15 year AAA rated corporate bond yields 6.25%. If the liquidity premium on this corporate

The 15 year Treasury bonds are yielding 3.75% while a 15 year AAA rated corporate bond yields 6.25%. If the liquidity premium on this corporate bond is 0.75%, what is the default risk premium of Treasury Bond? A. 1.75%. B. 0%. C. 2.50%. d. 3.25%.

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