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%
Correct Answer:
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