Default risk premium on the corporate bond

Reference no: EM13862834

A Treasury bond that matures in 10 years has a yield of 4.25%. A 10-year corporate bond has a yield of 7.25%. Assume that the liquidity premium on the corporate bond is 0.6%. What is the default risk premium on the corporate bond? Round your answer to two decimal places.

Reference no: EM13862834

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