FIN 310 - You own a 6% bond maturing in two years and priced
Question # 00666184
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Updated on: 03/30/2018 04:40 AM Due on: 03/30/2018
Expected yield -
?You own a 6% bond maturing in two years and priced at 88%. Suppose that there is a 9% chance that at maturity the bond will default and you will receive only 41% of the promised payment.
What is the bond's promised yield to maturity?
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Rating:
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Solution: FIN 310 - You own a 6% bond maturing in two years and priced