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A defaultable bond has scheduled annual coupons of $900 and scheduled principal repayment of $10,000 in 5 years. The simple annual risk-free rate is 4%,
A defaultable bond has scheduled annual coupons of $900 and scheduled principal repayment of $10,000 in 5 years. The simple annual risk-free rate is 4%, the annual probability of default (PD) is 3%, a...
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