Which of the following will likely have a higher interest rate risk premium: a. 10 year 8%

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Which of the following will likely have a higher interest rate risk premium:

a. 10 year 8% coupon Tesla bond

b. 20 year 8% coupon U.S. Treasury bond

c. 1-year commercial paper issue by Tesla with an effective yield to maturity of 3%

d. Interest Rate Risk Premium is the same for all bonds.

Posted Date: Jun 09, 2024 08:20 PM

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Which of the following will likely have a higher interest rate risk premium: a. 10 year 8%

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