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    pahala118's Avatar
    pahala118 Posts: 1, Reputation: 1
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    #1

    Sep 20, 2008, 12:40 PM
    What is the default risk premium on the corporate bond
    How do I calculate the DRP on a corporate bond?

    The Treasury Bond matures in 10 years and has a yield of 6%
    The corporate bond matures in 10 years and has a yield of 9%
    The liquidy premium is 0.5%.
    What is the default risk premium on the corporate bond?
    wingrun's Avatar
    wingrun Posts: 40, Reputation: 4
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    #2

    Sep 22, 2008, 09:55 PM

    The difference between 9 and 6 and then subtract 0.5 from it.
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