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Calculate the risk premium for each of the following rating

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Reference no: EM13485896

Calculate the risk premium for each of the following rating classes of long-term securities, assuming that the yield to maturity (YTM) for comparable Treasuries is 4.51%.

Rating class Nominal interest rate
AAA 5.12%
BBB 5.78
B 7.82

Reference no: EM13485896

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