What is the default risk premium on the bond


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%. What is the default risk premium on the bond?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: What is the default risk premium on the bond
Reference No:- TGS0709392

Expected delivery within 24 Hours