Probability Assignment | Homework For You
Assume the following values for probability of default
t+1 t+2 t+3 t+4 t+5
A 0.3 0.3 0.3 0.3 0.3
B 0 0 0 0.5 0.5
- Assume a 5 year, 10%, $1000 face value bond is bought at par: $1000. Calculate the yields on the two bonds. Which is higher?
Qi Computation of yield on a bond1st calculate the cumulative survival probability of coupon. Get Economics homework help today