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A one-year zero-coupon bond X will pay either $1,000 (par value) or $450 (default value) at maturity. You observe that this bond currently trades at

A one-year zero-coupon bond X will pay either $1,000 (par value) or $450 (default value) at maturity. You observe that this bond currently trades at $890. Assuming risk-free rate of return to be zero, you have INSUFFICIENT information to calculate which of the following?

a.

The risk-neutral probability of default

b.

The physical probability of default

c.

The bond's promised yield to maturity

d.

The percentage of par value recovered in default

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