I) What is the price of the bond?

Finance Basics

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?


What Students Are Saying About Us

.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐
"Honestly, I was afraid to send my paper to you, but you proved you are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"

.......... Customer ID: 11***| Rating: ⭐⭐⭐⭐⭐
"This company is the best there is. They saved me so many times, I cannot even keep count. Now I recommend it to all my friends, and none of them have complained about it. The writers here are excellent."


"Order a custom Paper on Similar Assignment at essayfount.com! No Plagiarism! Enjoy 20% Discount!"


Related posts:

  1. Determine any conservative or liberal leanings by the members based on their comments or vote
  2. NAME ONE FINANCIAL ASPECT, ONE QUALITY ASPECT, AND ONE CLINICAL ASPECT THAT NEED TO BE TAKEN INTO ACCOUNT FOR DEVELOPING THE EVIDENCE-BASED PRACTICE PROJECT. EXPLAIN HOW YOUR PROPOSAL WILL DIRECTLY AND INDIRECTLY IMPACT EACH OF THE ASPECTS
  3. PRIVATE INSURANCE AND MEDICARE PAY FOR THESE SCREENINGS WHICH CAN DETECT EARLY COLON CANCER AT A CURABLE STAGE AND HEALTH CARE PROVIDERS SHOULD BE EXPLAINING THE IMPORTANCE OF SCREENING TO THEIR PATIENTS.
  4. Discuss the foundational information for positive psychology and the featured element or concept of positive psychology on which you have chosen to focus
/0 Comments/by
0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *