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Question 8: The Ford 2.625% May 2032 bond is priced to yield 8.790%. The 2.625% May 2032 Treasury Bond is priced to yield 2.250%. The
Question 8:
The Ford 2.625% May 2032 bond is priced to yield 8.790%. The 2.625% May 2032 Treasury Bond is priced to yield 2.250%. The market assumes an 16.496% probability of default on the Ford bond.
- To the nearest basis point, the risk premium is calculated_answer basis points
- and the default premium is calculated_answer basis points
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Multinational Finance
Authors: Kirt C. Butler
4th Edition
1405181184, 978-1405181181
