Multiple Choice
Currently, a three-month Treasury bill pays 5% interest and a ten-year Treasury bond pays 4.7% interest. What is the risk premium of the typical A-rated corporate bond that pays 5.5% interest?
A) 0.5%
B) 0.8%
C) 5.5%
D) 1.17
Correct Answer:
Verified
Correct Answer:
Verified
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