Intro An investment costs $400 and offers a payoff of $500 with probability p and with probability 1-p. Time-equivalent Treasures offer an interest rate of 6%. Assume risk neutrality, i.e. the expected return on any security of the same time duration should be the same regardless of how risky the payoff is. Attempt 1/2 for 10 pts. Part 1 What is the promised return of the investment? 25 Correct Attempt 1/2 for 10 pts. Part 2 What is the probability of default? .152 Try again Try again