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
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 4.79%.
| Rating class | Nominal interest rate |
| AAA | 5.15% |
| BBB | 5.28% |
| B | 7.25% |
The risk premium for securities class AAA is______ %. (Round to two decimal places)
The risk premium for securities class BBB is_____ %. (Round to two decimal places)
The risk premium for securities class B is_____ %. (Round to two decimal places)
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Authors: David N. Feldman
1st Edition
1118445651, 978-1118445655
