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Calculate the risk premium for each of the following rating classes of long-term securities, assuming a 4.83% yield to maturity (YTM) for comparable Treasuries.(Click on
Calculate the risk premium for each of the following rating classes of long-term securities, assuming a
4.83%
yield to maturity
(YTM)
for comparable Treasuries.(Click on the icon here
in order to copy the contents of the data table below into a spreadsheet.)
Rating class | Nominal interest rate |
AAA | 5.11% |
BBB | 6.32 |
B | 7.86 |
The risk premium for securities class AAA is
nothing%.
(Round to two decimal places)
Calculate the risk premium for each of the following rating classes of long-term securities, assuming a 4.83% yield to maturity (YTM) for comparable Treasuries. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Rating class AAA BBB B Nominal interest rate 5.11% 6.32 7.86 The risk premium for securities class AAA is %. (Round to two decimal places) Enter your answer in the answer box and then click Check Answer. 2 parts Clear All Check Answer remainingStep by Step Solution
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