Question
A zero-coupon bond has a beta of 0.3 and promises to pay $1000 next year with a probability of 95%. If the bond defaults, it
A zero-coupon bond has a beta of 0.3 and promises to pay $1000 next year with a probability of 95%. If the bond defaults, it will pay nothing. One year Treasury securities are yielding 2%, and the equity premium is 5%. What is the time premium for this bond investment?
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An Introduction To Wavelet Theory In Finance
Authors: Francis In, Sangbae Kim
1st Edition
9814397830, 978-9814397834
