Default risk

Lets assume a T-bond that matures in 10 years has a yield of 5%. A 10-yr corporate bond has a yield of 7%. Assume that the liquidity premium (LP) on the corporate bond is 0.4%. How does one calculate the default rsik premium (DRP)?

© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/business/finance/default-risk-3ege