Question
Java Inc. has a 15 year bond with liquidity premium of 0.9%, maturity risk premium of 1.2%. The bond yield is 9.8%. The real risk-free
Java Inc. has a 15 year bond with liquidity premium of 0.9%, maturity risk premium of 1.2%. The bond yield is 9.8%. The real risk-free rate is 3.3% and average inflation for the period is 3.1% What is the default risk premium for Java Inc bonds?
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Fundamentals Of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
16th Edition
0357517571, 978-0357517574
