Multiple Choice
The yield to maturity on ACL bonds maturing in 2025 is 8.75%. The yield to maturity on a similar maturity U.S. Government Treasury bond is 7.06%, and the yield on Treasury bills is 6.51%. What is the default risk premium on the ACL bond?
A) 2.24%
B) 1.69%
C) 0.55%
D) 8.75%
Correct Answer:
Verified
Correct Answer:
Verified
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