Question
A corporate bond is rated BBB by S&P. It has a 10-year maturity, a 5% quarterly coupon, the YTM is 2.5%, the risk- free rate
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A corporate bond is rated BBB by S&P. It has a 10-year maturity, a 5% quarterly coupon, the YTM is 2.5%, the risk- free rate is 1.8% and the LGD is 40%. What is the implied risk premium demanded by bond owners?
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Business Mathematics
Authors: Gary Clendenen, Stanley A Salzman, Charles D Miller
12th Edition
0135109787, 9780135109786
