Default Risk Premium in Common Probability Distribution Formulas

The Default Risk Premium (DRP) measures the incremental return that investors require as compensation for undertaking the risk of holding a risky security, such as a corporate bond. And is denoted by DRP.

Formulas to find Default Risk Premium in Common Probability Distribution

fxDefault Risk PremiumGo

List of variables in Common Probability Distribution formulas

fx Interest Rate Go

fx Risk Free Rate Go

FAQ

What is the Default Risk Premium?

The Default Risk Premium (DRP) measures the incremental return that investors require as compensation for undertaking the risk of holding a risky security, such as a corporate bond.

Can the Default Risk Premium be negative?

{YesorNo}, the Default Risk Premium, measured in {OutputVariableMeasurementName} {CanorCannot} be negative.

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