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a local radio station issues a one-year zero-coupon bond. the face value is 1000. you believe that the probability of bankruptcy is 8%. the appropriate

a local radio station issues a one-year zero-coupon bond. the face value is 1000. you believe that the probability of bankruptcy is 8%. the appropriate discount rate ( taking into account the risk of the investment) is 1.5%.

I)what is the price of the bond?

II) what is the YTM of the bond?

III) if the 1-year risk-free rate is 1%. what is the yield spread?

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