Currently, a Three-Month Treasury Bill Has a Yield of 5

question 45

Multiple Choice

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%

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