They then concluded that the default premiums were too high. Would you agree? Why or why not?

They then concluded that the default premiums were too high. Would you agree? Why or why not?.

They then concluded that the default premiums were too high. Would you agree? Why or why not? Some studies that looked at low-rated bonds in the 1980s found that the default premiums received on these bonds were much larger than the default rate on them. (In other words, investors in these bonds made more over the period, even after adjusting for actual defaults, than investors in higher-rated or default free bonds.) They then concluded that the default premiums were too high. Would you agree? Why or why not?

They then concluded that the default premiums were too high. Would you agree? Why or why not?

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