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Risk Premium.Sandy has a choice between purchasing $5,000 in Treasury bonds paying 9.5% interest or purchasing $5,000 in BB-rated corporate bonds with a coupon rate

Risk Premium.Sandy has a choice between purchasing

$5,000

in Treasury bonds paying

9.5%

interest or purchasing

$5,000

in BB-rated corporate bonds with a coupon rate of

12.8%.

What is the risk premium on the BB-rated corporate bonds?

Part 2

The risk premium on the BB-rated corporate bonds is

enter your response here%.

(Round to one decimal place.)

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