red 1.00 India's sovereign bond rating was Baa3 in 2013, implying a default spread of 2.5%. The Indian government issue 10-year bonds at that time in rupees, with a yield of 7.85%. The US Equity Risk Premium was 5%. What is the Equity Risk Premium for India? What is the cost of equity for a 100% Indian company with a beta of 1.5 to the Indian stock market. tion Select one: a. ERP for India = 7.5% Cost of equity for Indian company = 16.60% o b . ERP for India = 9.5% Cost of enity for Indian company - 10.60% c. ERP for India = 5,5% Cost of equity for Indian company = 13.60%