Question: Sandy has a choice between purchasing $5,000 in Treasury bonds paying 4.4% interest or purchasing $5,000 in BB-rated corporate bonds with a coupon rate of

Sandy has a choice between purchasing $5,000 in Treasury bonds paying 4.4% interest or purchasing $5,000 in BB-rated corporate bonds with a coupon rate of 6.1%. What is the risk premium on the BB-rated corporate bonds?

The risk premium on the BB-rated corporate bonds is %??

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