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Yields for the following corporate bonds are listed in the table below along with their bond rating. Corporate bond, Reference # ABC Inc. XYZ

Yields for the following corporate bonds are listed in the table below along with their bond rating. Corporate bond, Reference # ABC Inc. XYZ Inc. Bond Rating CC B Yield (%, annual) 6.32% 5.74% If the yield on a government of Canada bond is 4.00%, what is the risk premium on the ABC Inc. bond?

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