What is the relation between a corporate bond’s expected return

| February 25, 2017

Question
1.- What is the relation between a corporate bond’s expected return and the yield to maturity. In your answer, define default risk and explain how these rates incorporate default risk
2 Why should investors who identify positive-NPV trades be skeptical about their findings if they don’t inside information or a competitive advantage? What return should the average investor expect to receive?

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