a higher default risk premium indicates investors expect a credit risk on the corporate bonds a.lower...

a higher default risk premium indicates investors expect a credit risk on the corporate bonds
a.lower
b.higher
c.neutral
d.not able to determine

Solutions

Expert Solution

The answer is b.higher

Credit risk is the loss of risk due to non repayment of loan

A high credit risk leads to a higher default premium and vice versa

Hence, the answer is b.

jeff jeffy answered 2 years ago

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