Question
A three year zero coupon bond will pay $100 at maturity if it does not default, but has a 20% chance of defaulting. If it
A three year zero coupon bond will pay $100 at maturity if it does not default, but has a 20% chance of defaulting. If it does default, will not pay anything. Its current price is $60. Was is the yield on this bond?
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New Issues In Financial And Credit Markets
Authors: Franco Fiordelisi , Philip Molyneux, Daniele Previati
1st Edition
0230275443, 978-0230275447
