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Consider the following contractual payments by a corporate bond: Face Value $ 1,000.00 Coupon r 12% Maturity 6 The current yield to maturity is 36%
Consider the following contractual payments by a corporate bond: |
Face Value | $ 1,000.00 |
Coupon r | 12% |
Maturity | 6 |
The current yield to maturity is 36% and expected yield is 28.67%. What default probability on the par value is this consistent with? |
Answer choices:
55% |
60% |
40% |
45% |
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