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Question 14 (2.5 points) A three-month Treasury bill has a yield of 3% while the yield on a ten-year Treasury bond is 7%. Wha
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Answer #1

Ans. Correct Option is 2.6%

Explanation-

Treasury bond ( Risk free rate ) = 7%

Corporate Bond ( Market return ) = 9.6%

Both having the same maturity period ,which is 10years ,

So,

Risk Premium = 9.6% - 7% = 2.6%

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