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    julianas Posts: 1, Reputation: 1
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    Jan 23, 2014, 01:33 PM
    Defaut-risk premium
    At present, 10-year Treasury bonds are yielding 4% while a 10-year corporate bond is yielding 6.8%. If the liquidity-risk premium on the corporate bond is 0.4%, what is the corporate bond's default-risk premium?

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