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Question 14 Assume the interest rate in the market for one-year zero-coupon government bonds is 3.1% and the rate for one-year zero-coupon grade BBB bonds
Question 14
Assume the interest rate in the market for one-year zero-coupon government bonds is 3.1% and the rate for one-year zero-coupon grade BBB bonds is 9.6%. The implied probability of default on the corporate bond is _________% (round to two decimals)
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