Find risk premium for rating classes of long-term securities


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

Solution Preview :

Prepared by a verified Expert
Finance Basics: Find risk premium for rating classes of long-term securities
Reference No:- TGS0559043

Now Priced at $5 (50% Discount)

Recommended (91%)

Rated (4.3/5)