Q6.32. Return to the example on Page 128, but as- sume that the probability of receiving full
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Q6.32. Return to the example on Page 128, but as- sume that the probability of receiving full payment of $210 in one year is only 95%, the probability of receiving $100 is 4%, and the probability of receiving absolutely no payment is 1%. If the bond quotes a rate of return of 12%, what is the time premium, the default premium, and the risk premium?
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Hafsa Mohammadi
I'm working as a SME since a year.And to my siblings and cousins I help them in solving Mathematics problems and I tell them tricks of Mathematics in an easy way how a problem can be solved. And I want to make Mathematics subject as an easy subject.Most of the students feel Mathematics subject as a difficult one.But Mathematics is a fun :)
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