Question
Currently, the interest rate for a 10 -year bond issued by Ford is 7.62%, and the interest rate for a 10-year bond issued by General
Currently, the interest rate for a 10 -year bond issued by Ford is 7.62%, and the interest rate for a 10-year bond issued by General Motors is 6.84%. The liquidity risk premium for Ford is 0.57%, whereas the liquidity risk premium for General Motors is 0.42%.
What is the difference in the default risk premium between Ford and General Motors?
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
