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The DC Inc 6.3% 2020 bond is priced to yield 7.1% while the Starbucks 6.3% 2020 bond is priced to yield 6.9%. The 6.3%
The DC Inc 6.3% 2020 bond is priced to yield 7.1% while the Starbucks 6.3% 2020 bond is priced to yield 6.9%. The 6.3% 2020 US Treasury bond is priced to yield 3.7%. If the market assumes that there is a 14% probability that Starbucks will default on the bond, what is the default premium for the DC Inc bond (rounded % to three places after the decimal)?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
