In 20XX, the 10-Year Treasury Rate Was 4

question 49

Multiple Choice

In 20XX, the 10-year Treasury rate was 4.5% while the average 10-year Aaa corporate bond debt carried an interest rate of 6.0%. What is the average default risk premium on Aaa corporate bonds?

• A) 0.75%
• B) 1.5%
• C) 1.95%
• D) 2.25%

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