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5.5 Treasury bond that matures in 10 years has a yield of 6%. A 10 year corporate bond has a yield of 9%.
5.5 Treasury bond that matures in 10 years has a yield of 6%. A 10 year corporate bond has a yield of 9%. Assume that the liquidity premium on the corporate bond is 0.5%. What is the default risk premium on the corporate bond?
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