Question
The 10 yearGGB (Greek Government Bond)could be bought for 50% of par yielding 15.3% in euros. That is a yield to maturity of over 30%.
The 10 yearGGB (Greek Government Bond)could be bought for 50% of par yielding 15.3% in euros. That is a yield to maturity of over 30%. It's estimated that due to risk, bondholders will only receive 30-50% of principal. How do you calculate the expected payout vs. investment if the investor only receives 30% of principal? or 50%?
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Survey Of Economics, Principles, Applications, And Tools
Authors: Arthur O'Sullivan, Steven M. Sheffrin, Stephen J. Perez
5th Edition
0132556073, 978-0132556071
