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A bond with $1000 face value pays 10% annual coupon and has 10 years to maturity. The bond trades at $1,386.09. Suppose the yield curve
A bond with $1000 face value pays 10% annual coupon and has 10 years to maturity. The bond trades at $1,386.09. Suppose the yield curve is flat and 10 year Treasury Yield is 1.86%. What is the default risk premium of the issuer of the bond. Explain answer
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