What is the implied probability of default of alphaland

Assignment Help Financial Management
Reference no: EM131901708

One year goverment bond yield of Germany is 3.1 % (the risk free rate) and the one year government bond of Alphaland is 9.4 %.

What is the implied probability of default of Alphaland for the next 12 monhts?

Please omit the % sign in your answer.

Reference no: EM131901708

Questions Cloud

Required return exceed foley required return : By how much does Beale's required return exceed Foley's required return?
How you plan to build your professional network : Write a 500 word description of how you plan to build your professional network whilst at University, to give yourself an advantage when applying.
What is expected loss of this loan contract : What is Expected Loss of this loan contract?
What smallest number of stack frames required by superpowers : ACTIVITY: Questions for superpowers. What's the best case? I.e., for a given n, what's the smallest number of stack frames required by superpowers
What is the implied probability of default of alphaland : What is the implied probability of default of Alphaland for the next 12 monhts?
What does environmental safety mean : In all honesty, how do you think you might react toworkplace violence, such as being cursed at or spoken to in a loud, demeaning manner?
What is the appropriate fiscal and monetary policy mix : 1.Consider an open economy with flexible exchange rates. Suppose output is at the natural level, but there is a trade de cit.
Research about a recent human trafficking event : Compile a list of local resources that could help victims, law enforcement, and/or community members. Consider things like women's shelters.
Stock exceed the required return on less risky stock : By how much does the required return on the riskier stock exceed the required return on the less risky stock?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the maximum initial cost the company

Scanlin, Inc., is considering a project that will result in initial aftertax cash savings of $1.84 million at the end of the first year, and these savings will grow at a rate of 1 percent per year indefinitely. What is the maximum initial cost the co..

  French company have any transaction risk as result of deal

Does the French company have any transaction risk as a result of this deal? Should ABC company hedge this transaction?

  Is there enough in the rainy-day fund to cover it

If Jack and Jill put the money in the account faithfully at the end of every year, Is there enough in the rainy-day fund to cover it?

  What was the cost of this acquisition to the shareholders

What was the cost of this acquisition to the shareholders of Ginormous Oil?

  About the capital structure components

RON Ltd has the following capital structure components:

  What is your expected rate of return on stock

You recently purchased a stock that is expected to earn 25 percent in a booming economy, 14 percent in a normal economy, and lose 5 percent in a recessionary economy. There is a 23 percent probability of a boom, a 62 percent chance of a normal econom..

  What was the apy and apr on the loan

What was the APR on the loan? What was the APY on the loan?

  What is their break-even level of operation income

Home Depot, Inc. had 1.70 billion shares of common stock outstanding in 2008, whereas Lowes Companies, Inc. had 1.46 billion shares outstanding. Assuming Home Depot's 2008 interest expense is $696 million, Lowes' interest expense is $239 million, and..

  Average beta of the new stocks added to the portfolio

What should be the average beta of the new stocks added to the portfolio?

  What is? unida after-tax debt cost of? capital

What is? Unida's unlevered cost of? capital? What is? Unida's after-tax debt cost of? capital?

  What is the total rate of return on the bond

Consider a bond (with par value = $1,000) paying a coupon rate of 10% per year semiannually when the market interest rate is only 4% per half-year. The bond has 3 years until maturity. Find the bond's price today and 6 months from now after the next ..

  Can the economy be in a long run macroeconomic equilibrium

Can the economy be in a long-run macroeconomic equilibrium without being in a short-run macroeconomic equilibrium?

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!

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