Compute the risk premium and percentage risk premium
Problem: In the Federal Reserve Bulletin, find the average yield of AAA and BBB bonds for a recent month. Compute the risk premium (in basis point) and the percentage risk premium on BBB Bonds relative to AAA bonds. Discuss how these values.
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Compute the risk premium (in basis point) and the percentage risk premium on BBB Bonds relative to AAA bonds. Discuss how these values.
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