Question
Expected yield - You own a 6% bond maturing in two years and priced at 88%. Suppose that there is a 9% chance that at
Expected yield - You own a 6% bond maturing in two years and priced at 88%. Suppose that there is a 9% chance that at maturity the bond will default and you will receive only 41% of the promised payment. What is the bond's promised yield to maturity?
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Microeconomics
Authors: Glenn Hubbard, Anthony O'Brien
7th Edition
0134737504, 978-0134737508
