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    sazer44's Avatar
    sazer44 Posts: 1, Reputation: 1
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    Dec 15, 2008, 09:00 PM
    Calculating default risk permium for corporate bond
    A treasury bond that matures in 10years has a yield of 7%. A 10 year corporate bond has a yield of 12%. Assume the liquidity risk premium on the corporate bond is 1%. What is the default risk premium on the corporate bond?
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    Dec 18, 2008, 02:26 PM

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