Take Test: Final Exam Content Question 1 Question 1 1. The expected return on Northeast Corporation's stock is 14%. The stock's dividend is expected

If 10-year T-bonds have a yield of 6.2%, 10-year corporate bonds yield 8.5%, the maturity risk premium on all 10-year bonds is 1.3%, and corporate bonds have a 0.4% liquidity premium versus a zero liquidity premium for T-bonds, what is the default risk premium on the corporate bond?a.