A 3-year zero coupon corporate bond is traded at a price of


A 3-year zero coupon corporate bond is traded at a price of $760. A 3-year zero coupon Treasury bond is traded at $820. Both bonds have face value of $1000. What is the default risk premium for the corporate bond if yields are compounded semi-annually?

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Finance Basics: A 3-year zero coupon corporate bond is traded at a price of
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