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A corporate bond matures in one year. The bond promises a $50 coupon and principal of $1,000 at maturity. Suppose the bond has a 10%
A corporate bond matures in one year. The bond promises a $50 coupon and principal of $1,000 at maturity. Suppose the bond has a 10% probability of default and payment under default is$400. If an investor buys the bond for $907.14, calculate the promised yield on the bond. 6.6% 15.75% 5.0% 8.58% Which of the following rated bonds has the most risk? Aaa Aa Baa Ba
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