Agatha pays 770 for a 1000 face value bond paying interest at 1 1%) convertible semiannually, and
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Agatha pays 770 for a 1000 face value bond paying interest at 1 1%)
convertible semiannually, and redeemable at par in 20 years. If her desired yield was 12% convertible semiannually, what rate of default did she expect? Assume that once default occurs, no further payments are made.
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Diksha Bhasin
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Related Book For 
Theory Of Interest And Life Contingencies With Pension Applications A Problem Solving Approach
ISBN: 978-1566983334
3rd Edition
Authors: Asa Michael M. Parmenter, Ph.d.
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