Question: Risk Premium. Sandy has a choice between purchasing $5,000 in Treasury bonds paying 5.4% interest or purchasing $5,000 in BB-rated corporate bonds with a coupon

Risk Premium. Sandy has a choice between purchasing $5,000 in Treasury bonds paying 5.4% interest or purchasing $5,000 in BB-rated corporate bonds with a coupon rate of 8.6%. What is the risk premium on the BB-rated corporate bonds? The risk premium on the BB-rated corporate bonds is \%. (Round to one decimal place.)

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