Sandy has a choice between purchasing 5000 in treasury, Financial Management

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Sandy has a choice between purchasing 5000 in treasury

Sandy has a choice between purchasing $5,000 in Treasury bonds paying 4.25% interest and purchasing $5,000 in BB rated corporate bonds with a coupon rate of 7.25%. What is the risk premium if Sandy opts for the Corporate Bonds versus the Treasury Bonds?

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Financial Management: Sandy has a choice between purchasing 5000 in treasury

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Financial Management: Sandy has a choice between purchasing 5000 in treasury

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