Calculate the default risk premiums, and inflation risk premiums for these three bonds. Show your formula and
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Question:
Calculate the default risk premiums, and inflation risk premiums for these three bonds. Show your formula and calculations.
A) GT10: GOV 10-year U.S. Treasury Bond, Price = $99.05, yield = 2.36%
B) GTII10: GOV 10-year TIPS Bond, Price = $98.95, yield = 0.48%
C) MSFT4389877 Microsoft 10-year bond, Price = $96.87, yield = 2.802%
Related Book For
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
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