Business
Business, 24.11.2020 21:40, khaylaperry

Rearden Metal has a bond issue outstanding with ten years to maturity, a yield to maturity of 8.6%, and a B rating. The corresponding risk-free rate is 3% and the market risk premium is 6%. Assuming a normal economy, the expected return on Rearden Metal's debt is closest to: a. 0.6%
b. 1.6%
c. 4.6%
d. 6.0%

answer
Answers: 1

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Rearden Metal has a bond issue outstanding with ten years to maturity, a yield to maturity of 8.6%,...

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