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You own a bond with an annual coupon rate of 7 % maturing in two years and priced at 8 6 % . Suppose that
You own a bond with an annual coupon rate of maturing in two years and priced at Suppose that there is a chance that at maturity the bond will default and you will receive only of the promised payment. Assume a face value of $
AWhat is the bonds promised yield to maturity?
B What is its expected yield ie the possible yields weighted by their probabilities answer to A is just need help with this one
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