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At​ present, 10-year Treasury bonds are yielding 3.5% while a​10-year corporate bond is yielding 6.4%. If the​ liquidity

Posted: Sun Jun 05, 2022 10:07 am
by answerhappygod
At​ present, 10-year Treasury bonds are yielding 3.5% while
a​10-year corporate bond is yielding 6.4%. If the​ liquidity-risk
premium on the corporate bond is 0.6%, what is the corporate​bond's
default-risk​ premium? Note that a Treasuty security should have
no​ default-risk premium and​ liquidity-risk premium.
The corporate bonds default risk premium is __ % ?