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You assume the following information regarding the risk free interest rates and a debt-issuing (with a face value of $1,000) corporate respective interest rates:
You assume the following information regarding the risk free interest rates and a debt-issuing (with a face value of $1,000) corporate respective interest rates: Years Risk Free Interest Rate Corporate Interest Rate 1 4% 4.5% 2 4% 5.0% 3 4% 5.5% 4 6.0% 4% 5 6.5% 4% You also assume that the recovery rate throughout the entire time frame of 5 years is 35%, what is the value of a corporate bond with 5 years to maturity?
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