If a 10 year treasury bond has a yield of 8 and a 10 year, Ask an Expert

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If a 10 year Treasury bond has a yield of 8%, and a 10 year corporate bond that is rated AA has a yield of 10%, and the liquidity premium on the corporate bond is 1%, what is the default risk premium on the AA rated, 10-yar corporate bond? Please show all work so I understand it.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91776650

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