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-   -   What is the default risk premium on the corporate bond (https://www.askmehelpdesk.com/showthread.php?t=262465)

  • Sep 20, 2008, 12:40 PM
    pahala118
    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?
  • Sep 22, 2008, 09:55 PM
    wingrun

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

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