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If 10-year T-bonds have a yield of 5.2%, 10-year corporate bonds yield 7.5%, the corporate...

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Question

Finance

If 10-year T-bonds have a yield of 5.2%, 10-year corporate bonds yield 7.5%, the corporate bonds have a 0.2% default risk premium, what is the liquidity premium on the corporate bond?

A.

2.30%
B.

2.10%
C.

1.00%
D.

1.20%

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