4. Default option (S24.2) The difference between the value of a government bond and a similar corporate

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4. Default option (S24.2) The difference between the value of a government bond and a similar corporate bond is equal to the value of an option. What is this option, and what is its exercise price?

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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