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Question 30 1 pts A zero coupon bond, issued by RiskyDebt inc., has 3 years to maturity and a YTM of 5%. You believe there
Question 30 1 pts A zero coupon bond, issued by RiskyDebt inc., has 3 years to maturity and a YTM of 5%. You believe there is a 4% probability that XYZ will default of the bond and a 50% loss given default. If RiskyDebt inc. defaults, you believe it will default at maturity. If the price of a 3 years Treasury zero-coupon-bond is 94 , what is the expected risk premium for RiskyDebt inc.'s corporate bond? 3 dp
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