default risk

Greg.Babushkin@mail.state.ky.us
Wed, 4 Aug 1999 13:36:18 -0400

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I have a question about "default risk" in beginning of chapter 7!

I can't really create a definition for this term - could somebody explain it
to me? And why Long term gov't bonds have no risk of default when there is
a 1.4% risk premium vs. Treasury bonds - I am a bit confused here!

Thanks

Gregory S. Babushkin
Property & Casualty
Kentucky State Department of Insurance
(502) 564-6046

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