Remember from class that YTM - Riskfree = sum of risk premiums. Assume the risk-free rate is 1.789 the credit risk premium is 1.036 and the maturity premium is 1.247 what is the yield of the bond? (also this is an estimate)

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
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Remember from class that YTM - Riskfree = sum of risk premiums.
Assume the risk-free rate is 1.789 the credit risk premium is 1.036 and
the maturity premium is 1.247 what is the yield of the bond? (also this is
an estimate)
Transcribed Image Text:Remember from class that YTM - Riskfree = sum of risk premiums. Assume the risk-free rate is 1.789 the credit risk premium is 1.036 and the maturity premium is 1.247 what is the yield of the bond? (also this is an estimate)
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