Is price lower or higher of same bond in previous point

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Calculate the price of a zero coupon with 10 years maturity, par value 100$ assuming that the 10-year zero coupon rate is 5%, the default and recover probabilities are 50%, and recovery rate of 50%. Is the price lower or higher of the same bond in the previous point? Why?

Consider the same bond but with default probability of 0%, recover probability of 100% and recovery rate of 50%. Is the price the same? Why?

Reference no: EM131084525

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