Purchase Solution

What is the default risk premium on the corporate bond?

Not what you're looking for?

Ask Custom Question

The [real] risk-free rate is 3%. Inflation is expected to average 2% a year for the next three years and then 4% a year for the following three years. A six year corporate bond has a yield of 8%. What is the default risk premium on the corporate bond?

Purchase this Solution

Solution Summary

The default risk premium on the corporate bonds are examined. The inflation expected to be average.

Purchase this Solution


Free BrainMass Quizzes
Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.