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Default risk premium

Asked Aug 22, 2007, 10:31 PM — 5 Answers
What is the equation for calculating the default risk premium?

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nicespringgirl's Avatar
nicespringgirl Posts: 1,240, Reputation: 990
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#2

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.
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Mladek's Avatar
Mladek Posts: 2, Reputation: 1
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#3

Mar 26, 2008, 04:23 AM
Comment on nicespringgirl's post
Quote:
Originally Posted by nicespringgirl View Post
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.
I believe he asked for the formula not the dictionary definition.
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Mladek's Avatar
Mladek Posts: 2, Reputation: 1
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#4

Mar 26, 2008, 04:30 AM
As far as I know there isn't one. The closest I've ever gotten is:

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anpao13mani's Avatar
anpao13mani Posts: 1, Reputation: 1
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#5

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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sadaf_noor's Avatar
sadaf_noor Posts: 1, Reputation: 10
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#6

Jul 1, 2010, 08:23 AM
Risk premium= Km - Krf
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