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How was this plotted? b) Now suppose Exxon Mobil, an AAA-rated company, had bonds with the same maturities as the Treasury bonds.As an approximation, plot
How was this plotted?
b) Now suppose Exxon Mobil, an AAA-rated company, had bonds with the same maturities as the Treasury bonds.As an approximation, plot an Exxon Mobil yield curve on the same graph with the Treasury bond yield curve.(Hint: Think about the default risk premium on ExxonMobil's long-term versus its short-term bonds.)
c) Now plot the approximate yield curve of Exelon Corp., a risky nuclear utility.
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