Bond Maturity Liquidity Default Risk YTM A2 High Low 3.50% B2 High High 4.50% C8 High Low 5.50% D8 Low High 7.00% Based on the table above, what is the liquidity risk premium? 0.5% 1% 2%

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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Bond Maturity Liquidity Default Risk YTM
A2 High Low 3.50%
B 2 High High 4.50%
C8 High Low 5.50%
D8 Low High 7.00%
Based on the table above, what is the liquidity risk premium?
0.5%
1%
2%
Transcribed Image Text:Bond Maturity Liquidity Default Risk YTM A2 High Low 3.50% B 2 High High 4.50% C8 High Low 5.50% D8 Low High 7.00% Based on the table above, what is the liquidity risk premium? 0.5% 1% 2%
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