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06-06-2023
Business

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Five-year Treasury securities yield 5.5%, while 5-year Corporate securities yield 11.8%, and have a liquidity premium of 1.8%. Assume that the maturity risk premium (MRP) equals zero. What is the default risk premium on the Corporate securities? Select one: Oa. 4.5% O b. 3.3% O c. 5.5% Od. 4.3% K

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