Question 8 (1 point) Orange Inc. has issued zero-coupon corporate bonds with a 9-year maturity. The...
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Question 8 (1 point) Orange Inc. has issued zero-coupon corporate bonds with a 9-year maturity. The bond has a face value of $1,000. Investors believe there is a 55% chance that the company will default on these bonds. If the company does default, investors expect to recover 52%. If investors require a 9.20% expected return on their investment in these bonds, what is the yield to maturity on these bonds? Instructions: Round the result to two decimal places and do not put the "%" symbol in the answer box. For example if you get a result of 17.8492% then write 17.85 in the answer box below. Your Answer: Question 8 (1 point) Orange Inc. has issued zero-coupon corporate bonds with a 9-year maturity. The bond has a face value of $1,000. Investors believe there is a 55% chance that the company will default on these bonds. If the company does default, investors expect to recover 52%. If investors require a 9.20% expected return on their investment in these bonds, what is the yield to maturity on these bonds? Instructions: Round the result to two decimal places and do not put the "%" symbol in the answer box. For example if you get a result of 17.8492% then write 17.85 in the answer box below. Your Answer:
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