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AA bond yields 5% with a 0.3% default vs BB bond that yields 8% with a 3% expected default. If the recovery rate is 45%,
AA bond yields 5% with a 0.3% default vs BB bond that yields 8% with a 3% expected default. If the recovery rate is 45%, which bond gives the higher after default expected return? 1) AA 2) BB
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Accounting Volume 2
Authors: James Reeve, Jonathan Duchac, Sheila Elworthy, Carl S. Warren
2nd Canadian edition
176501452, 978-0176501457, 978-0176509743
