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de·fault pre·mi·um
(
plural
de·fault pre·mi·ums
)
noun
Definition:
additional yield due to default risk:
an extra amount paid on a loan, above what would normally by paid, to reflect an increased likelihood of default
Encarta® World English Dictionary [North American Edition] © & (P)2009 Microsoft Corporation. All rights reserved. Developed for Microsoft by Bloomsbury Publishing Plc.
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