What is the default risk premium on the corporate bond

Assignment Help Finance Basics

Reference no: EM13282282

Default Risk Premium

A Treasury bond that matures in 10 years has a yield of 5.75%. A 10-year corporate bond has a yield of 7.25%. Assume that the liquidity premium on the corporate bond is 0.7%. What is the default risk premium on the corporate bond?

Reference no: EM13282282

Questions Cloud

Contrast the essential characteristics of each : Contrast the essential characteristics of each of these three derivative instruments.

Describe thermochemical equations tol calculate the ph : Consider the following thermochemical equations : 8Mg(s) + Mg(NO3)2(s) ? Mg3N2(s) + 6MgO(s) ?H°rxn = -3884 kJ Mg3N2(s) ? 3Mg(s) + N2(g) ?H°rxn = +463 kJ 2MgO(s) ? 2Mg(s) + O2(g) ?H°rxn = +1203 kJ Use the above equations to calculate the ?H°f (in k..

Find the impulse response h of the matched filter : a.) Find transfer function H(w) of a matched filter for thispulse. No time shifting is necessary. b.) Find the impulse response h(t) of the matched filter. c.) Find output waveform y0(t) of the matched filter.

Enhance ethics and business performance : Analyze the components of two of these models and how they can be used to enhance ethics and business performance. Describe how organizations can utilize the models to drive ethical decision-making, including how those organizations might integrate t..

What is the default risk premium on the corporate bond : A Treasury bond that matures in 10 years has a yield of 5.75%. A 10-year corporate bond has a yield of 7.25%. Assume that the liquidity premium on the corporate bond is 0.7%. What is the default risk premium on the corporate bond?

Selection from swifts a modest proposal : Reading selection from Swift's A Modest Proposal. Swift begins with offering the solution that the English could do things which might solve the problem of over-population and the mistreatment of citizens in Ireland and ends by offering the soluti..

How to compute the ionization energy of a hydrogen atom : Ionization energy is the energy needed to eject an electron from an atom. Compute the ionization energy of a hydrogen atom in its first excited state (n = 2).

Useful in measuring managers moral reasoning : When measuring moral dilemmas, Kohlberg suggests the use of hypothetical dilemmas. However, Straughan disagrees and states that hypothetical dilemmas do not evoke the same reactions as familiar dilemmas and, hence, the findings are not as useful in m..

Design and test a two input circuit with characteristics : Vout=3.5v1 +(-1.5)v2 . The input impedances should be: input 1: 20k, input 2:∞.Youmay need to use 2 or more op-amps (inverting, noninverting,summing, differential, voltage follower...). Show calculations anda drawing of the op amps used.

User Account

All Pages