Sandy has a choice between purchasing 5000 in treasury
Sandy has a choice between purchasing $5,000 in Treasury bonds paying 5.3 percent interest and purchasing $5,000 in BBrated corporate bonds with a coupon rate of 9.2 percent. What is the risk premium on the BBrated corporate bonds?
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suppose the returns on long-term government bonds are normally distributed assume long-term government bonds have a
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sandy has a choice between purchasing 5000 in treasury bonds paying 53 percent interest and purchasing 5000 in bbrated
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