1 what would it take for a bond to have a larger risk, Ask an Expert

Finance

1. What would it take for a bond to have a larger risk premium than default premium?

2. A corporate zero-bond promises 7% in 1 year. Its market beta is 0.3. The equity premium is 4%; the equivalent Treasury rate is 3%. What is the appropriate bond price today?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91991227

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