Question
19. If the current yield for AAA rated corporate bonds is 6%, the current yield for AAA rated municipal bonds is 5.2%, the current yield
19. If the current yield for AAA rated corporate bonds is 6%, the current yield for AAA rated municipal bonds is 5.2%, the current yield for AA rated corporate bonds is 5.5%, the current yield for AA rated municipals is 4%, the current 10-year Treasury Bond yield is 3.7%, and the current US T-Bill rate is 1.3%, then what is the risk premium for AA rated corporate bonds?
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Financial Markets and Institutions
Authors: Jeff Madura
12th edition
9781337515535, 1337099740, 1337515531, 978-1337099745
