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Find what is the default? premium

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Estimate the default premium and the maturity premium given the following three investment? opportunities:

a Treasury bill with a current interest rate of 2.25?%;

a Treasury bond with a? twenty-year maturity and a current interest rate of 5.75?%;

and a? AAA, corporate bond with a? twenty-year maturity and an interest rate of 9?%.

Question 1: What is the default? premium?

Reference no: EM132706144

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