Question: A one year zero coupon bond X will be pay either 1000 (par value)for 450 (default value) at maturity you observe that this bond currently

A one year zero coupon bond X will be pay either 1000 (par value)for 450 (default value) at maturity you observe that this bond currently trades at $890 assuming risk-free rate of return to be zero you have insufficient information to calculate which of the following?

a) The risk neutral probability of default

b) The physical probability of default

c) The bonds promised yield to maturity

d) The percentage of par value recovered in default

A one-year zero-coupon bond X will pay ether $1.000 (par value) or $450 (default value) at maturity. You observe that this bond currently trades at $890. Assuming risk free rate of retum to be zero, you have INSUFFICIENT information to calculate which of the following? a. The risk neutral probability of default b. The physical probability of defaut The bond's promised yield to maturity d. The percentage of par value recovered in default

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