What is probability of default as perceived by the market

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Suppose the interest rate for a 1-year Treasury bond is 10% and a 1-year BB-rated corporate bond is 15.8%. What is the probability of default as perceived by the market?

Reference no: EM131055761

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What is probability of default as perceived by the market : Suppose the interest rate for a 1-year Treasury bond is 10% and a 1-year BB-rated corporate bond is 15.8%. What is the probability of default as perceived by the market?
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