Question
What is the probability of default if the risk premium demanded by bond holders is 2% and the return on the riskless bond is 5%
What is the probability of default if the risk premium demanded by bond holders is 2% and the return on the riskless bond is 5% (round to the nearest decimal point)?
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Microeconomics
Authors: Robert Pindyck, Daniel Rubinfeld
8th edition
978-0132870436, 132870436, 013285712X, 978-0133371178, 133371174, 978-0132857123
