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Project Topic; Corporate Bond Yields and Liquidity Risk: An Analysis of U.S market and Bangladesh market Since corporations may default, the returns on their bonds

Project Topic; Corporate Bond Yields and Liquidity Risk: An Analysis of U.S market and Bangladesh market

Since corporations may default, the returns on their bonds must incorporate a premium for such risk. For safe (so-called "investment-grade") bonds however, the risk of default is very low (less than 0.1%) and cannot explain the returns observed. What other factors are at play?

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