Question: Find the default - risk premium. We bought a 1 - year, 5 % coupon, corporate bond with a face value of $ 1 0

Find the default-risk premium. We bought a 1-year, 5% coupon, corporate bond with a face value of $100.
Assume 1-year risk-free rate is 5 percent. Suppose there is a 10% probability that the company will go bankrupt and pay nothing.

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