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a local radio station issues a one-year zero-coupon bond. the-(Answered)

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Question

a local radio station issues a one-year zero-coupon bond. the face value is 1000. you believe that the probability of bankruptcy is 8%. the appropriate discount rate ( taking into account the risk of the investment) is 1.5%.

I)?what is the price of the bond?

II) what is the YTM of the bond?

III) if the 1-year risk-free rate is 1%. what is the yield spread?




Question:

 

A local radio station issues a one-year zero-coupon bond. The face value is 1000. you

 

believe that the probability of bankruptcy is 8%. The appropriate discount rate (taking

 

into account...

 

Paper#9210328 | Written in 27-Jul-2016

Price : $19
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