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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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