you purchased a coupon bond with face value=1000, price=775, coupon rate=0.1, the rate of it are changing

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you purchased a coupon bond with face value=1000, price=775, coupon rate=0.1, the rate of it are changing from B to C, you will face the 50% chance of the bankrupt of this bond company. now the YTM of risk free bond is 0.1, the risk premium of this bond to risk free bond is o.1(after the change of risk rate), what is the present price of this bond if you want to sell it, and what is your capital loss if you sell it now?

Posted Date: Jun 25, 2024 06:22 PM

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you purchased a coupon bond with face value=1000, price=775, coupon rate=0.1, the rate of it are changing

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