What is the default risk premium on corporate bonds, Finance Basics

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What is the default risk premium on corporate bonds

Suppose 10-year T-bonds have a yield of 5.30% and 10-year corporate bonds yield 6.75%. Also, corporate bonds have a 0.25% liquidity premium versus a zero liquidity premium for T-bonds, and the maturity risk premium on both Treasury and corporate 10-year bonds is 1.15%. What is the default risk premium on corporate bonds? Can anyone help?

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Finance Basics: What is the default risk premium on corporate bonds

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Corporate bonds have a 0.25% liquidity premium versus a zero liquidity premium for T-bonds, and the maturity risk premium on both Treasury and corporate 10-year bonds is 1.15%.

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Finance Basics: What is the default risk premium on corporate bonds

Reference No:- TGS0726790

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Recent Questions Asked Finance Basics

Q : Why effectively arbitrage excess returns from low risk stock

Q : What is the market value of the firm prior to the recap

Q : What will be the nominal rate of return on a perpetual

Q : How much will rocky pay in tuition his first year of school

Q : What is the default risk premium on corporate bonds

Q : What coupon rate should the company set on its new

Q : Calculate what is break-even in dollars

Q : What is the total carrying cost and the restocking cost

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: What is the default risk premium on corporate bonds

Reference No:- TGS0726790

Recent Questions Asked Finance Basics

Q : Why effectively arbitrage excess returns from low risk stock

Q : What is the market value of the firm prior to the recap

Q : What will be the nominal rate of return on a perpetual

Q : How much will rocky pay in tuition his first year of school

Q : What is the default risk premium on corporate bonds

Q : What coupon rate should the company set on its new

Q : Calculate what is break-even in dollars

Q : What is the total carrying cost and the restocking cost

Q : Management

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