Question: Consider a firm whose 1-year zero-coupon bonds currently yield 10.1%. The yield on 1-year zero-coupon Treasury bonds is 6.9%. Assume that bondholders expect to recover

Consider a firm whose 1-year zero-coupon bonds currently yield 10.1%. The yield on 1-year zero-coupon Treasury bonds is 6.9%. Assume that bondholders expect to recover $0.64 on the dollar if the firm defaults? Assume periodicity of 1.

What is this firms implied probability of default?

Express your answer in percent and round your answer to 2 decimal places. For example, if your answer is 0.09457, please write down 9.46 (without the percent sign).

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