Economics What is the probability of default if the risk premium demanded by bond holders is 2% and the return on the riskless bond is 5% (round to the nearest decimal point) Savet a. 1.9% b. All of the answers here are incorrect Oc 1.3% Od. 21% Oe2.8%

Economics What is the probability of default if the risk premium demanded by bond holders is 2% and the return on the riskless bond is 5% (round to the nearest decimal point) Savet a. 1.9% b. All of the answers here are incorrect Oc 1.3% Od. 21% Oe2.8%

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter31: Capital Markets

Section: Chapter Questions

Problem 2E

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Question

Economics

What is the probability of default if the risk premium demanded by bond holders is 2% and the return on the riskless bond is 5% (round to the nearest decimal point)

Savet

a. 1.9%

b. All of the answers here are incorrect

Oc 1.3%

Od. 21%

Oe2.8%

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