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Suppose that Casino Royale has issued bonds that mature in 1 year. They currently offer a yield of 20%. However, there is a 50% chance
Suppose that Casino Royale has issued bonds that mature in 1 year. They currently offer a yield of 20%. However, there is a 50% chance that Casino will default and bondholders will receive nothing. What is theexpectedyield on the bonds? Assume these are zero coupon bonds with annual compounding.(Input the amount as a positive value and as a percent rounded to 1 decimal place.)
Expected yield is again or loss?
of%?
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