he following yields on 20 year bonds prevailed in January for the three securiti
ID: 2697575 • Letter: H
Question
he following yields on 20 year bonds prevailed in January for the three securities shown:Aa-rated corporate bond 9.98% Baa-rated corporate bond 10.34% B-rated corporate bond 11.12%
The difference in yields is due primarily to Answer a. financial risk premium b. maturity risk premium c. seniority risk premium d. default risk premium he following yields on 20 year bonds prevailed in January for the three securities shown:
Aa-rated corporate bond 9.98% Baa-rated corporate bond 10.34% B-rated corporate bond 11.12%
The difference in yields is due primarily to 9.98% 10.34% 11.12% financial risk premium maturity risk premium seniority risk premium default risk premium Aa-rated corporate bond 9.98% Baa-rated corporate bond 10.34% B-rated corporate bond 11.12%
Explanation / Answer
default risk premium d. default risk premiumRelated Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.