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2. What is the Yield To Maturity of Corporation As bond issue? 3. What is the 20-year Maturity Risk Premium (rmp)? Using the file below
2. What is the Yield To Maturity of Corporation As bond issue?
3. What is the 20-year Maturity Risk Premium (rmp)?
Using the file below (a copy can also be found in Canvas under this week's module) to complete the bond table and answer questions 19-26; Face Maturity Value 1 year $ 1,000 Coupon Market Rate Price 0.00% $ 968.99 Security Rating Treasury Maturity Default risk-free Risk Risk rate Premium Premium YTM Treasury 3 years $ 1,000 1.90% $ 939.06 Treasury 5 years $ 1,000 4.30% $ 932.42 Treasury 10 years $ 1,000 6.80% $1,007.12 Treasury 20 years $ 1,000 6.60% $ 908.25 Corp A A 5 years $ 1,000 8.10% $1,000.00 Corp B BB 10 years $ 1,000 7.90% $ 859.88 Corp C AA 20 years $ 1,000 8.50% $ 972.22 1. What is the risk-free rate (rf)Step by Step Solution
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