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urgent The company is rated AA and its bonds are trading at 3 per cent above the comparable government bond rate, with the share price
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The company is rated AA and its bonds are trading at 3 per cent above the comparable government bond rate, with the share price being $5.60. Your bank's experience is that the recovery rate in the event of default is 40 per cent. The risk-free rate is equal to 4 per cent. Carry out a credit analysis on a market-premium basis. (round to three decimal places) Probability of repayment Risk premium Step by Step Solution
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