Card 56 / 59: On January 5, you buy a 10-year corporate bond yielding 3.5 percent. On January 6, the Central Bank of the United States uses monetary policy to lower the rate on benchmark 10-year Treasuries from 1.5 percent to 1.0 percent. What is the new risk premium?
A) 33%, or (1.5%-1.0%)/1.5%
B) 50%, or (1.5%-1.0%)/1.0%
C) 2.0%, or 3.5%-1.5%
D) 2.5%, or 3.5%-1.0%

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