default risk premium

linds1010 · #1 Aug 22, 2007, 10:31 PM

What is the equation for calculating the default risk premium?

nicespringgirl · Aug 23, 2007, 09:27 PM

A risk premium is the minimum difference between the expected value of an uncertain bet that a person is willing to take and the certain value that he is indifferent to.

Mladek · Mar 26, 2008, 04:30 AM

As far as I know there isn't one. The closest I've ever gotten is:

anpao13mani · Oct 27, 2009, 08:29 PM

Who has the simplest way to calculate the default risk premium, given the yield, real rate of return, inflation premium, liquidity premium, & maturity risk premium with a financial calclator?



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