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4. Assume a one-year T-Bill is currently yielding 6 percent, and an AAA-rated discount bond with similar maturity is yie
Posted: Tue Nov 16, 2021 8:31 am
by answerhappygod
- 4 Assume A One Year T Bill Is Currently Yielding 6 Percent And An Aaa Rated Discount Bond With Similar Maturity Is Yie 1 (18.61 KiB) Viewed 124 times
4. Assume a one-year T-Bill is currently yielding 6 percent, and an AAA-rated discount bond with similar maturity is yielding 9 percent. If the expected recovery from collateral in the event of default is 60 percent of principal and interest, what is the probability of repayment bf the AAA-rated bond? What is the probability of default?