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The 10-year treasury is at 4 the risk premium for asset a

Assume Asset 'A' pays a 10% yield in perpetuity, and an 'identical' Asset 'B' pays an 8% yield (e.g. 8% cap rate) that grows 2% per year in perpetuity. The 10-year treasury is at 4%. The risk premium for Asset 'A' is 6%. What is the risk premium for Asset 'B'?

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Finance Basics: The 10-year treasury is at 4 the risk premium for asset a

Reference No:- TGS02761865

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