Question: The 15 year Treasury bonds are yielding 3.75% while a 15 year AAA rated corporate bond yields 6.5%. 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 6.5%. If the liquidity premium on this corporate bond is 0.75%, what is its default risk premium?

		2%.
		2.75%.
		1.75%.
		0%.

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