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Question 1 5 pts Given the following information: 1-year zero-coupon Corporate yield: 5.6% 2-year zero-coupon Corporate yield: 7.8% 1-year zero-coupon Treasury bonds yield: 3.6% 2-year
Question 1 5 pts Given the following information: 1-year zero-coupon Corporate yield: 5.6% 2-year zero-coupon Corporate yield: 7.8% 1-year zero-coupon Treasury bonds yield: 3.6% 2-year zero-coupon Treasury bonds yield: 5.0% Recovery rate of Corporate Bond: 0.37 What is this firm's implied cumulative probability of default (in percentage)? NOTE: Round all calculations to 4 decimal places. If your final number is 0.1234 then write 12.34 5.13 Question 1 5 pts Given the following information: 1-year zero-coupon Corporate yield: 5.6% 2-year zero-coupon Corporate yield: 7.8% 1-year zero-coupon Treasury bonds yield: 3.6% 2-year zero-coupon Treasury bonds yield: 5.0% Recovery rate of Corporate Bond: 0.37 What is this firm's implied cumulative probability of default (in percentage)? NOTE: Round all calculations to 4 decimal places. If your final number is 0.1234 then write 12.34 5.13
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