Zero-coupon corporate bonds

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Grummon Corporation has issued? zero-coupon corporate bonds with a? five-year maturity? (assume $ 100$ face value? bond). Investors believe there is a 10 % chance that Grummon will default on these bonds. If Grummon does? default, investors expect to receive only 65 cents per dollar they are owed. If investors require a 6 %expected return on their investment in these? bonds, what will be the

a. price of these? bonds?

b. yield to maturity on these? bonds?

Reference no: EM131492784

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