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Default Risk Premium
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Can you tell me how to calculate the DRP on the Corporate bonds? Info that I have follows: 5 Year Treasury note 5% interest rate 5 year Corporate bond (high quality) 6% interest rate 5 Year Corporate Bond (low quality) 8% interest rate Thanks for the help! Kathy
Default risk premium
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What is the equation for calculating the default risk premium?
Default Risk Premium
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Suppose the yield on a 30-year corporate bond rated Aaa is 8.86 percent and the yield on a 30-year Treasury bond is 8.27 percent. What is the default risk premium? View more questions Search
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