If credit (default) risk is the only reason for yield differentials, then what is the default risk premium? During the Great Recession, Highest-Quality Corporate offered 0.8% above UST of the same maturity, while medium quality corporate offered 3.1%. How do they compare today explain why there may be any change?

Answer rating: 100% (QA)

If credit default risk is the only reason for yield differentials then the default risk premium is t... View the full answer