Question
Suppose a one-year GE zero-coupon bond has an yield of 3% and the one-year Treasury has a yield of 2.1%. The recovery rate of the
Suppose a one-year GE zero-coupon bond has an yield of 3% and the one-year Treasury has a yield of 2.1%. The recovery rate of the GE bond is 55%. The probability of default of the GE bond implied from the approximation is _____ (Express in percentage)
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Investments Analysis And Management
Authors: Charles Jones, Nick Jones
11th Edition
0470477121, 9780470477120
