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    Finance Risk Premium Calculation For AAA And BBB Bonds

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    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.

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    © BrainMass Inc. brainmass.com June 3, 2020, 5:00 pm ad1c9bdddf
    https://brainmass.com/business/finance/finance-risk-premium-calculation-aaa-bbb-bonds-10743

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    Solution Summary

    The solution finds the average yield of AAA and BBB bonds for a recent month.

    $2.19

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