You invested in long-term corporate bonds and earned 61, Financial Management

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You invested in long-term corporate bonds and earned 61

You invested in long-term corporate bonds and earned 6.1 percent. During that same time period, large-company stocks returned 12.6 percent, long-term government bonds returned 5.7 percent, U.S. Treasury bills returned 4.2 percent, and inflation averaged 3.8 percent. What average risk premium did you earn?

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Financial Management: You invested in long-term corporate bonds and earned 61

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