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Company LMN has bonds with 3 0 years to maturity. They pay 8 % interest every year. An analyst gives additional risk for holding company

Company LMN has bonds with

30

years to maturity. They pay

8 %

interest every year. An analyst gives additional risk for holding company

s stock at

4 % .

Company

s YTM or rate of return is

9 % ?

What is bond yield plus risk

-

premium?

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