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Assume a one-year fixed income security is currently yielding 3.5 percent. BBB rated bond with similar maturity is yielding percent. The implied probability of default

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Assume a one-year fixed income security is currently yielding 3.5 percent. BBB rated bond with similar maturity is yielding percent. The implied probability of default for the BBB rated bond is 30% and the expected recovery from the collateral in case of default for the bondholders is 60 percent of the principal and the interest. Then, the current yield of the BBB rated bond is? O 12.49% O 17.61% O Not able to determine 6.34% O 11.02%

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