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Determine the implied risk premium on ntt bonds

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Reference no: EM133074408

Suppose a NTT company bond, maturing in one year, can be purchased today for $975. Assuming the bond is held to maturity, the investor will receive $1000 (principal) plus 7% interest (that is .07 x $1000-$70). Determine the rate of return on this investment? Determine the implied risk premium on NTT bonds?

Reference no: EM133074408

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