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The default risk premium fluctuates mainly because risk-neutral investors will often become risk-averse as time passes. as new information about a borrower's creditworthiness becomes available.

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The default risk premium fluctuates mainly because risk-neutral investors will often become risk-averse as time passes. as new information about a borrower's creditworthiness becomes available. because bond rating agencies tend to be inconsistent in their ratings of bonds. because taxes tend to rise over the long run

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