CFIN -STUDENT EDITION-ACCESS >CUSTOM<
6th Edition
ISBN: 9780357752951
Author: BESLEY
Publisher: CENGAGE C
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Chapter 5, Problem 17PROB
Summary Introduction
Maturity risk premium:
Premium required for accepting the risk on the specific security.
Calculate the maturity risk premium as follows:
Given nine months Treasury bill yield is 2.3%. Yield on three years bond is 2.9% and yield on years bonds yield is 4.3%. Bonds does not have liquidity premium.
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