a. A bond with a face value of $100 has a coupon rate of 12%, paid quarterly. The bond matures in 1 year. If the required yield is 10%, what is the current price of the bond? Is the bond attractive? b. Bethany bought a one-year zero-coupon corporate bond issued by Delta Ltd. Although Delta Ltd. has good credit rating, but it still has a 5% chance of default. In case of a default, Bethany will be able to recover about 60% of her money. If the discount rate of this bond is 6%, calculate yield to maturity. mail) Formulae: L or LGD = 1 - Recovery rate R + DL 1 - DL Y = c. Explain how can bond holders mitigate any credit risk they face?