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You have a 7 year bond paying at 6% coupon semiannually. The bond is trading at 98 cents on the dollar. Estimate the implied probability

You have a 7 year bond paying at 6% coupon semiannually.

The bond is trading at 98 cents on the dollar.

Estimate the implied probability of default.

You will need to surf the web to infer risk free rates and/or compare to a treasury bond.

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