Describe yield and risk premium on aig corporate debt


In the fall of 2008, AIG, the largest insurance company in the world at the time, was at the risk of defaulting. As a result, the U.S. government stepped in to support AIG with large capital injections, and an ownership stake. How would this affect, if at all, the yield and risk premium on AIG corporate debt? Explain.

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Microeconomics: Describe yield and risk premium on aig corporate debt
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