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This question illustrates the effects of default risk on a bonds yield to maturity. BBB Corp has a risky bond with a face value of
This question illustrates the effects of default risk on a bonds yield to maturity. BBB Corp has a risky bond with a face value of 1,000, an annual coupon rate of 10%, maturity of 5 years, and an opportunity cost of capital of 11%. If bondholders expect that there is only a 50% chance that they will receive each of the last 3 payments, what is this bond's yield-to-maturity? Enter your answer as a percent without the %; round your final answer to two decimals.
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