Question: chapter 16 Q25 Risk Premium. Sandy has a choice between purchasing $5,000 in Treasury bonds paying 7.5% interest or purchasing $5,000 in BB-rated corporate bonds

chapter 16 Q25 chapter 16 Q25 Risk Premium. Sandy has a choice between purchasing $5,000

Risk Premium. Sandy has a choice between purchasing $5,000 in Treasury bonds paying 7.5% interest or purchasing $5,000 in BB-rated corporate bonds with a coupon rate of 10.9%. What is the risk premium on the BB-rated corporate bonds? The risk premium on the BB-rated corporate bonds is \%. (Round to one decimal place.)

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