A 2 year zero coupon bond has a rate of 7 % . The risk free rate

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Question:

2

year zero coupon bond has a rate of

7 % .

The risk free rate is

4 % .

What is the risk

-

neutral probability that the bond will default in

2

years?

Posted Date: May 18, 2024 10:07 PM

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A 2 year zero coupon bond has a rate of 7 % . The risk free rate

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