Default premiums the st louis federal reserve board has fi, Ask an Expert

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Default Premiums The St. Louis Federal Reserve Board has fi les listing historical interest rates on its Web site www.stls.frb.org . Find the link for "FRED" data. You will find listings for Moody's Seasoned Aaa Corporate Bond Yield and Moody's Seasoned Baa Corporate Bond Yield. A default premium can be calculated as the difference between the Aaa bond yield and the Baa bond yield. Calculate the default premium using these two bond indexes for the most recent 36 months. Is the default premium the same for every month? Why do you think this is?

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