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A corporate bond has a face value of $1000, a coupon rate of 7.2%, and a time to maturity of 16 years. The discount rate

A corporate bond has a face value of $1000, a coupon rate of 7.2%, and a time to maturity of 16 years. The discount rate is 18% per year. There isdprobability that a corporation defaults at any given coupon payment. In case of a bond default, the recovery value is $681. If the bond market value is $450, computed.

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