Why would the risk premium be higher on republic services

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Reference no: EM131305425

In 2010, Republic Services, a waste management firm, issued 10-year notes and 30-year bonds.

According to an article in the Wall Street Journal, the 10-year notes had a risk premium of 1.40 percentage points over 10-year Treasury notes, while the 30-year bonds had a risk premium of 1.65 percentage points over 30-year Treasury bonds.

Why would the risk premium be higher on Republic Services's 30-year bonds than on its 10-year notes?

Reference no: EM131305425

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