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The Dupont 10.625% December 2035 bond is priced to yield 11.065% while the Starbucks 10.625% December 2035 bond is priced to yield 12.125%. If the

The Dupont 10.625% December 2035 bond is priced to yield 11.065% while the Starbucks 10.625% December 2035 bond is priced to yield 12.125%. If the market assumes that there is a 10.032% probability that Dupont will default on the bond then the market also assumes that the probability of default on the Starbucks bond is Type: Calculated Points Awarded: 0/2 Your Answer(s): : 0.156 % and the expected yield in this market is 10.909 %

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