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**A project will have one of the following time 1 payoffs, each with the corresponding probability. $71 with probability 10%. $227 with probability 73%. $584
**A project will have one of the following time 1 payoffs, each with the corresponding probability. $71 with probability 10%. $227 with probability 73%. $584 otherwise. The discount rate is 3.6%. Debt holders contribute $100 at time 0 to finance the project. What is the default premium on the debt? Give your answer in percentage to closest 0.1 percent. | |||
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