In the Federal Reserve Bulletin, find the average yield of AAA and BBB bonds for a recent month. Compute the risk premium (in basis point) and the percentage risk premium on BBB Bonds relative to AAA bonds. Discuss how these values.
See the attached file.© BrainMass Inc. brainmass.com March 4, 2021, 5:46 pm ad1c9bdddf
The solution finds the average yield of AAA and BBB bonds for a recent month.