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Delta, almost in bankruptcy, issued a bond two years ago that provided a yield to maturity of 12 percent. Treasury bonds were yielding 9 percent

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Delta, almost in bankruptcy, issued a bond two years ago that provided a yield to maturity of 12 percent. Treasury bonds were yielding 9 percent at that time. The current risk premium for Delta versus government bonds is two-third (2/3) what it was two years ago. If Treasury bonds are currently yielding 8.2 percent, then at what rate should Deita expect to issue new bonds? 10.296 7.8% 9.7% 11.2% 9.2%

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