Two Years Ago,Targeau Corporation Issued BBB Rated Bonds and the Risk

Two years ago,Targeau Corporation issued BBB rated bonds and the risk premium was 2.42 percentage points as marked up on long-term U.S.government bonds.The firm's bonds had a 10-year maturity,were semiannual payment 9 percent coupon bonds with a $1,000 par value,and were originally priced at $973.17.Currently,Targeau's BBB-rated bonds have 8 years to maturity and are priced at $1,070.43.The current risk premium on BBB rated bonds is 1.3 percentage points.By how many percentage points did the long-term government bond rates change in two years?

A) -0.38%
B) -1.12%
C) -0.62%
D) -0.50%
E) -1.50%