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what is the default risk premium? im stuck If 10-year T-bonds have a yield of 6.2%, 10-year corporate bonds yield 7.9% , the maturity risk
what is the default risk premium? im stuck
If 10-year T-bonds have a yield of 6.2%, 10-year corporate bonds yield 7.9% , the maturity risk premium on all 10-year bonds is 1.3%, and corporate bonds have a 0.4% liquidity premium versus a zero liquidity premium for T-bonds, what is the default risk premium on the corporate bond? a. 4.90% b. 2.10% c. 1.70% Od. 1.30% e: 0.00% Step by Step Solution
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