(Answered) If 10-year t-bonds have a yield of 87 10-year corporate

Finance

If 10-year T-bonds have a yield of 8.7%, 10-year corporate bonds yield 13.2%, the maturity risk premium on all 10-year bonds is 1.5%, and corporate bonds have a 0.8% liquidity premium versus a zero liquidity premium for T-bonds, what is the default risk premium on the corporate bond in percent?

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