Default premium between these two levels of bond ratings

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On February 9, 2017, the average yield for corporate bonds rated Aaa by Moody’s was 3.94% while the average yield for corporate bonds rated Baa by Moody’s was 4.64%. Given this, what is the implied default premium between these two levels of bond ratings?

-0.70%

0.00%

0.23%

0.70%

4.64%

Reference no: EM131456246

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