Question
The 15 year Treasury bonds are yielding 4.75% while a 10 year AA rated corporate bond yields 7.25%. The maturity risk premium of this Treasury
The 15 year Treasury bonds are yielding 4.75% while a 10 year AA rated corporate bond yields 7.25%. The maturity risk premium of this Treasury Bond is 0.65%. If the liquidity premium and default risk premium on this corporate bond is 0.75% and 1.25% respectively, calculate its maturity risk premium.
| 0%. | ||
| 0.5%. | ||
| 1.15%. | ||
| 0.15%. |
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Financial Management Principles And Applications
Authors: Arthur J. Keown, J. William Petty, John D. Martin, Jr. Scott, David F.
10th Edition
0131450654, 9780131450653
