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Business, 03.12.2021 01:00 SenpaiTaii

Suppose a Treasury bond costs $100 and promises a payment of $105 in one year. A bond from the Acme Corporation costs $100 and promises $107 in a year. Assume that Acme pays the $107 with probability p. With probability 1-p , Acme defaults and pays nothing. What are the likely values of p

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Suppose a Treasury bond costs $100 and promises a payment of $105 in one year. A bond from the Acme...
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