7 Assume an efficient capital market. We have the following information about corporate bond A att=0. The nominal (face)

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7 Assume an efficient capital market. We have the following information about corporate bond A att=0. The nominal (face)

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7 Assume An Efficient Capital Market We Have The Following Information About Corporate Bond A Att 0 The Nominal Face 1
7 Assume An Efficient Capital Market We Have The Following Information About Corporate Bond A Att 0 The Nominal Face 1 (23.93 KiB) Viewed 26 times
7 Assume an efficient capital market. We have the following information about corporate bond A att=0. The nominal (face) value of the bond is €10000. The remaining maturity is 1 year and the annual coupon rate is 5.0%. The probability of default equals 50.0%. In case of default, the cash flow will be €900.0. The 1-year spot rate (11) is 2.0%. Att =0 the price of the bond A is €900.0. Calculate the credit spread of bond A. Round your answer to two decimals (eg, enter 12.34567% as 12.35). 1.0p 首 Answer
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