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Calculate the risk premium for each of the following rating classes of long-term securities, assuming...

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Question

Finance

Calculate the risk premium for each of the following rating classes of long-term securities, assuming a

4.83%

yield to maturity

(YTM)

for comparable Treasuries.(Click on the icon here

in order to copy the contents of the data table below into a spreadsheet.)

Rating class

Nominal interest rate

AAA

5.11%

BBB

6.32

B

7.86

The risk premium for securities class AAA is

nothing%.

(Round to two decimal places)

image

Calculate the risk premium for each of the following rating classes of long-term securities, assuming a 4.83% yield to maturity (YTM) for comparable Treasuries. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Rating class AAA BBB B Nominal interest rate 5.11% 6.32 7.86 The risk premium for securities class AAA is %. (Round to two decimal places) Enter your answer in the answer box and then click Check Answer. 2 parts Clear All Check Answer remaining

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