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Calculate the risk premium for each of the following rating classes of long-term securities, assuming that the yield to maturity (YTM) for comparable Treasuries is

Calculate the risk premium for each of the following rating classes of long-term securities, assuming that the yield to maturity (YTM) for comparable Treasuries is 4.29 %.

Rating Class Nominal interest rate

AAA 4.64%

BBB 6.09

B 8.22

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