Question
Suppose the current 1-year US treasury rate is 3.00%. A. Calculate the yield for a $100 face value 1-year corporate bond with a 3% coupon
Suppose the current 1-year US treasury rate is 3.00%.
A. Calculate the yield for a $100 face value 1-year corporate bond with a 3% coupon and a 2.5% probability of default.
B. What is the risk premium, if any, for this bond?
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The Great Convergence Information Technology And The New Globalization
Authors: Richard Baldwin
1st Edition
067466048X, 9780674660489
