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A zero coupon bond has a beta of 0.3 and promises to pay $ 1000 next year with a probability of 95%. If the bond

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A zero coupon bond has a beta of 0.3 and promises to pay $ 1000 next year with a probability of 95%. If the bond defaults, it will pay nothing. One year Treasury securities are yielding 2%, and the equity premium is 5%. What is the time premium for this bond investment? 1.9% 5.0% 4.8% 2.0% Previous Next > 26 96 E R T K WM B PLTGR

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