Question
Assume that for a particular bond, the probability of default is 0.1, the face value is 113, the recovery rate is 0.62 and the risk
Assume that for a particular bond, the probability of default is 0.1, the face value is 113, the recovery rate is 0.62 and the risk free rate is 0.02. The risk-free rate is stated here as a decimal.
What is the price of the bond? Round your answer to two decimal places.
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Handbook Of Project Finance For Water And Wastewater Systems
Authors: Michael Curley
1st Edition
0873714865, 978-0873714860
