Examveda
Examveda

Yield on bond is 7% and market required return is 14% then market risk premium would be

A. 2.00%

B. 21.00%

C. 0.50%

D. 7.00%

Answer: Option D

Solution(By Examveda Team)

Market risk premium = Market required return - Yield on bond
= 14% - 7% = 7.00%

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