Business, 01.05.2021 22:00 evere11605

Lunar coast Incorporated issued BBB bonds two years ago that provided a yield to maturity of 12.5 percent. Long-term risk-free government bonds were yielding 8.5 percent at that time. The current risk premium on BBB bonds versus government bonds is half of what it was two years ago. If the risk free long-term government bonds are currently yielding 7.8 percent, then at what rate should Lunar coast expect to issue new bonds?

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Lunar coast Incorporated issued BBB bonds two years ago that provided a yield to maturity of 12.5 pe...

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