The St. Louis Federal Reserve Board has files listing historical interest rates on their Web site www.stlouisfed.org.
Question:
The St. Louis Federal Reserve Board has files listing historical interest rates on their Web site www.stlouisfed.org. Find your way to the “FRED” data, then “Interest Rates.” You will find listings for Moody’s Seasoned Aaa Corporate Bond Yield and Moody’s Seasoned Baa Corporate Bond Yield. A default premium can be calculated as the difference between the Aaa bond yield and the Baa bond yield. Calculate the default premium using these two bond indices for the most recent 36 months. Is the default premium the same for every month? Why do you think this is?
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No the default premium is not the same for every month The default ...View the full answer
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Related Book For 
Essentials Of Corporate Finance
ISBN: 9780073382463
7th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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