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lcard044 lcard044
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A year ago
If 15-year T-bonds have a yield of 7.3%, 15-year corporate bonds yield 9.9%, the maturity risk premium on all 15-year bonds is 2.1%, and corporate bonds have a 0.6% liquidity premium versus a zero liquidity premium for T-bonds, what is the default risk premium on the corporate bond?


1.75%



1.90%



2.00%



2.36%

Textbook 
 Financial Management: Theory and Practice

Financial Management: Theory and Practice


Edition: 4th
Authors:
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localbabe10localbabe10
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A year ago
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lcard044 Author
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Thanks for your help!!
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this is exactly what I needed
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