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MArishka [77]
2 years ago
9

the spread between the interest rates on bonds with default risk and default-free bonds is called the:

Business
1 answer:
jeka57 [31]2 years ago
5 0

The spread between the interest rates on bonds with default risk and default-free bonds is called the risk premium.

A default-free bond is a bond in which the bond issuer would not miss scheduled payments of either the coupon or principal. Bonds issued by the government are generally considered to be default-free. This is because the government can print money to make payments.

A bond with a default risk is a bond in which the bond issuer can miss scheduled payments of either the coupon or the principal. Bonds issued by private individuals are generally considered to be bonds with default risk.

Bondholders usually demand a compensation for holding bonds with a default risk. This compensation is known as risk premium.

Risk premium = return on bonds with default risk - return on default- free bond.

To learn more, please check: brainly.com/question/4304080?referrer=searchResults

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Explain the difference between direct and indirect strategy when writing reports​
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The AUD/$ spot exchange rate is AUD1.60/$ and the SF/$ is SF1.25/$. The AUD/SF cross exchange rate is _____. Group of answer cho
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2 years ago
Context content and culture are
Black_prince [1.1K]

Complete Question:

Context, content and culture are:

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Answer:

Context, content and culture are:

O Three dimensions of evaluating corporate gifts.

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8 0
3 years ago
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