Question
(a)Vitrox is rated AA, and its bond is trading at 1.5% above the government bond yield of 3.0% yield. Your bank's experience is that the
(a)Vitrox is rated AA, and its bond is trading at 1.5% above the government bond yield of 3.0% yield. Your bank's experience is that the recovery rate in the event of default is 75%.
Based on market-premium analysis, perform a credit evaluation on Vitrox. Give a brief comment on the results.
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Fundamentals of Investments Valuation and Management
Authors: Bradford Jordan, Thomas Miller
7th edition
978-0078096785, 78096782, 978-0077861636, 77861639, 978-0078115660
