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Default Risk Premium

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Given the following:
One year U.S government securities 4.5%
One year Bank Loans 6.0%
Five year U.S government securities 7.0%
Five Year bank Loans 9.5%

What is the Default Risk Premium on one year bank loans and on Five years bank loans?

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Solution Summary

Calculates the Default Risk Premium on one year bank loans and on Five years bank loans.

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Given the following:
One year U.S government securities 4.5%
One year Bank Loans 6.0%
Five year U.S ...

Purchase this Solution


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