Social Sciences, asked by mrstoteng, 7 months ago

A treasury bond that matures in 10years has a yield of 6%.A 10year corporate bond has a yield of 8%.Assume that the liquidity premium on the corporate bond is 0.5%.What is the default risk premium on the corporate bond​

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Answered by thrichu
4

Answer:

DEFAULT RISK PREMIUM A Treasury bond that matures in 10 years has a yield of 6%. A 10-year corporate bond has a yield of 8%. Assume that the liquidity premium on the corporate bond is 0.5%.

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