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23-09-2022
Business

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If 10-year t-bonds have a yield of 6. 2%, 10-year corporate bonds yield 8. 5%, the maturity risk premium on all 10-year bonds is 1. 3%, and corporate bonds have a 0. 4% liquidity premium versus a zero liquidity premium for t-bonds, what is the default risk premium on the corporate bond?.

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