Question: please help thetealter. The maturity risk premium (MRP) is determined from the formalas 0.1(t1)%, where t is the security's maturity. The liguidity premium (LP) on

please help

thetealter. The maturity risk premium (MRP) is determined from the formalas 0.1(t1)%, where t is the security's maturity. The liguidity premium (LP) on all Tathon Hydroponics's bonds is 1.05 m. The following table shows the current ralationship betwenn bond ratings and default risk, premiuris (DRP)! Tahan Hydroponics issues 12-year, AA rated bonds. What is the yieid on one of these bonds? Disregard cross-product terms, that is, if averaging is required, tisit the arithmetic average. 12.175 11.07% 11. 12% 5,7595 Eased on your understanding of the determinants of interest rates, if everything else remains the same, which of the following will be true? A BBB-rated bond has a lower default risk, premium as compared to an AMA-rated bond. An AAA-rated bond has less default risk than a BB:rated bond

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