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Suppose a 10-year Treasury (risk-free) bond has a YTM of 5% and a Coupon Rate of 5%. Further, a 10-year corporate bond has a YTM

Suppose a 10-year Treasury (risk-free) bond has a YTM of 5% and a Coupon Rate of 5%. Further, a 10-year corporate bond has a YTM of 7% and a coupon rate of 6%. What is the expected risk premium (in dollars) of this bond?

a)$44.26

b)$106.18

c)$8.08

d)$71.06

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