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Type of Security Interest Rate 5-Year Treasury Note 5% 5-Year Corporate Bond (High quality) 6%

Type of Security Interest Rate  5-Year Treasury Note 5%  5-Year Corporate Bond (High quality) 6%  5-Year Corporate Bond (Low quality) 8%


Calculate the default risk premium (DRP) on the Corporate bonds. 


SOLUTION PREVIEW

DRP = i - irf



File name Type of Security Interest Rate.xlsx    File type: xlsx  PRICE: $2