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    linds1010's Avatar
    linds1010 Posts: 1, Reputation: 1
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    #1

    Aug 22, 2007, 10:31 PM
    default risk premium
    What is the equation for calculating the default risk premium?
    nicespringgirl's Avatar
    nicespringgirl Posts: 1,237, Reputation: 187
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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.
    Mladek's Avatar
    Mladek Posts: 2, Reputation: 1
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    #3

    Mar 26, 2008, 04:23 AM
    Comment on nicespringgirl's post
    I believe he asked for the formula not the dictionary definition.
    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?
    sadaf_noor's Avatar
    sadaf_noor Posts: 1, Reputation: 1
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    #6

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