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Question 23 1.5 pts Assume the interest rate in the market for one-year zero-coupon government bonds is i-8% and the rate for one-year zero-coupon grade
Question 23 1.5 pts Assume the interest rate in the market for one-year zero-coupon government bonds is i-8% and the rate for one-year zero-coupon grade BBB bonds is k- 10.2%. What is the implied probability of repayment on the corporate bond (round to two decimals)? O 2.00% 2.04% Question 24 1.5 pts Which of the following statements is true? O Zero-coupon corporate bonds are bonds without any intervening cash flows between issue and maturity and thus these bonds typically sell at a large discount from face value O Zero-coupon corporate bonds are bonds with semi-annual cash flows between issue and maturity and thus these bonds typically sell at a large discount from face value O Zero-coupon corporate bonds are bonds without any intervening cash flows between issue and maturity and thus these bonds typically sell at a small discount from face value O Zero-coupon corporate bonds are bonds with annual cash flows between issue and maturity and thus these bonds typically sell at a large discount from face value 98.00% 97.96%
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