Question
Today the 10-year Treasury interest, or yield, is 2.7%. The average interest rate on a BBB-rated corporate bond with similar features was 8.32%. Therefore, the
Today the 10-year Treasury interest, or yield, is 2.7%. The average interest rate on a BBB-rated corporate bond with similar features was 8.32%. Therefore, the default risk premium (DRP) on the BBB-rated corporate bond is __________ %. Keep 2 decimal places.
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An Introduction to Investment Banks, Hedge Funds, and Private Equity
Authors: David P. Stowell
1st edition
978-0123745033, 0123745039, 978-9380931074
