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A Treasury bond that matures in 10 years has a yield of 4.25%. A 10-year corporate bond has a
yield of 9.75%. Assume that the liquidity premium on the corporate bond is 0.30%. What is the
default risk premium on the corporate bond? Round your answer to two decimal places.
____%

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#2 A Treasury bond that matures in 10 years has a yield of 4-25-- A 10.pdf

  • 1. #2 A Treasury bond that matures in 10 years has a yield of 4.25%. A 10-year corporate bond has a yield of 9.75%. Assume that the liquidity premium on the corporate bond is 0.30%. What is the default risk premium on the corporate bond? Round your answer to two decimal places. ____%