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QUESTION FOUR a)There are four general approaches to gauging credit risk. Two of them are credit ratings and traditional credit analysis. State and briefly explain

QUESTION FOUR

a)There are four general approaches to gauging credit risk. Two of them are credit ratings and traditional credit analysis. State and briefly explain the other two

approaches to gauging credit risk.

b)What is the present value of a corporate bond with a coupon rate of 6% that pays you K102.50 in the next six months and K110 in the next 12 months?

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