User Account

All Pages

Probability of default of the corporate bond

Assignment Help Finance Basics
Reference no: EM133068768

The risk-free rate is 5% per year and a corporate bond yields 6% per year. Assuming a recovery rate of 75% on the corporate bond and 0.8% risk premium for a risk-averse investor, what is the approximate market-implied one-year probability of default of the corporate bond?

Reference no: EM133068768

Questions Cloud

What are the weights in portfolio : You buy 100 shares of Richmond Corporation for $45 each and 200 shares of Collingwood Limited for $20 each. What are the weights in your portfolio?
Corporate finance-debt instruments : You are valuing a Mortgage Note with a face value of $80,000,000 with a face rate of 8% annual COMPOUND, term 4 years with QUARTERLY payments.
Culturally sensitive communication in your country : Conduct outside research on the languages spoken and tips on culturally sensitive communication in your country of focus.
Compute the amount of goodwill Wymans recorded : At the time of the purchase the fair value of Delta's assets were $900,000 and Liabilities were $400,000. Compute the amount of goodwill Wymans recorded
Probability of default of the corporate bond : The risk-free rate is 5% per year and a corporate bond yields 6% per year. Assuming a recovery rate of 75% on the corporate bond and 0.8% risk premium for a ris
Determining the firm 2019 operating cash flow : The 2018 balance sheet of Speith's Golf Shop, Inc., showed long-term debt of $2.5 million, and the 2019 balance sheet showed long-term debt of $2.75 million.
At what amount should the building be recorded : The stock is widely trade and sold for $17 per share. At what amount should the building be recorded by Kansas Company
Determining the macaulay duration of bond : 1. Find the Macaulay duration of a 6% coupon bond making annual coupon payments if it has 3 years until maturity and has a yield to maturity of 6%.
Evaluating the business you intend to launch : Evaluating the business you intend to launch in the UAE through your SLE course - Smartphone App Mediated Solution for Handling COVID-19 in UAE

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd