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View Full Version : Default risk premium


ichapman
Sep 20, 2008, 12:23 PM
Say a t-bond that matures in 10 years has a yield of 6 percent. A 10 year corp bond has a yield of 8 percent. Assume that the liquidity premium on the corp bond is 0.5 percent. What is the default risk premium on the corp bond?

shazia mustafa
Mar 27, 2010, 11:39 AM
I don't understand clearly

morgaine300
Mar 28, 2010, 12:07 AM
The thread is old so it doesn't matter. It's also homework, and it would make perfect sense to someone who understands that class. (Though it might not make much sense to a lot of investors.)