Question: Risk Premium, Sandy has a choice between purchasing $5,000 in Treasury bonds paying 7.7% 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 7.7% interest or purchasing $5,000 in BB-rated corporate bonds with a coupon rate of 10.1% 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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