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An investor holds a 2-year annual coupon bond with a par value of $1,000 and an annual coupon of 7.43%. The investor estimates that the
An investor holds a 2-year annual coupon bond with a par value of $1,000 and an annual coupon of 7.43%. The investor estimates that the bond has a .25% chance of defaulting in the first period and a 7.98% chance the bond defaults in the second period, given that it didnt default in the first. What is the bond's total probability of defaullt?
A 7.99%
B 8.23%
C 8.21%
D 9.23%
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