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Sandy has a choice between purchasing $5000 in Government of Canada bonds aying 5 percent interest, compounded semi-annually, or purchasing $5000 in BB-rated orporate bonds

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Sandy has a choice between purchasing $5000 in Government of Canada bonds aying 5 percent interest, compounded semi-annually, or purchasing $5000 in BB-rated orporate bonds with a coupon rate of 7.2 percent, compounded semi-annually. What is he risk premium on the BB-rated corporate bonds

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