Question
A 10-year Treasury Bond has a yield of 2.1%, while a 10-year MGM Bond has a yield of 9.1%. The majority of this difference in
A 10-year Treasury Bond has a yield of 2.1%, while a 10-year MGM Bond has a yield of 9.1%. The majority of this difference in yields is due to which of the following risk premium?
Group of answer choices
uncertainty-risk premium
liquidity-risk premium
maturity risk premium
inflation-risk premium
default-risk premium
.
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Continuous Time Finance
Authors: Robert C. Merton
1st Edition
0631185089, 978-0631185086
