Question: please answer should be two decimal places In mid-2009, Rite Aid had CCC-rated, 15-year bonds outstanding with a yield to matunity of 173% At the
In mid-2009, Rite Aid had CCC-rated, 15-year bonds outstanding with a yield to matunity of 173% At the time, similar matunity Treasures had a yield of 3% Supprise the market risk premium is 6% and you believe Rite Aid's bonds have a beta of 0.35 The expected loss rate of these bonds in the event of default is 50% Whal annual probability of default would be consistent with the yield to malunty of these bonds in mid-20092 What annual probability of default would be consistent with the yield to matunty of these bonds in mid-20097 The required return for this investment is % (Do not round until the final answer. Thon round to two decimal places.) The annual probability of default is % (Do not round until the final answer. Then round to two decimal places)
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