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    Exam 5: The Risk Structure and Term Structure of Interest Rates
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    Currently, a Three-Month Treasury Bill Has a Yield of 5
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Currently, a Three-Month Treasury Bill Has a Yield of 5

Question 45

Question 45

Multiple Choice

Currently, a three-month Treasury bill has a yield of 5% while the yield on a ten-year Treasury bond is 4.7%. What is the risk premium of the typical A-rated ten-year corporate bond with a yield of 5.5%?


A) 0) 5%
B) 0) 8%
C) 5) 5%
D) 1) 17%

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