Calculate the risk premium for each of the following rating

Reference no: EM131111819

Calculate the risk premium for each of the following rating classes of long-term securities, assuming that the yield to maturity (YTM) for comparable Treasuries is 4.51%.

Rating class Nominal interest rate

AAA ............ 5.12%

BBB ............ 5.78

B ............ 7.82

Reference no: EM131111819

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