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Fly-By-Night Inc. issues $100 face value, zero-coupon, one-year bonds. The current return on one-year, zero- coupon U.S. government bonds is 3.5%. If the Fly-By-Night bonds

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Fly-By-Night Inc. issues $100 face value, zero-coupon, one-year bonds. The current return on one-year, zero- coupon U.S. government bonds is 3.5%. If the Fly-By-Night bonds are selling for $92.00, what is the risk premium for these bonds? 8.796 8.0% 5.296 1.5%

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