Solution-What is expect return if you invest in bond

What is expect return if you invest in bond

Reference no: EM133112646

Consider a two-year zero coupon bond with face value of $100. The YTM of the bond is 30%. Assume that there is a 50% chance that the company will default, and if the company defaults only $40 of the face value is paid. What is your expect return if you invest in this bond?

Reference no: EM133112646

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What is expect return if you invest in bond

Reference no: EM133112646

Reference no: EM133112646

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