The interest rate is 4.8%.  A company wants to sell a one-year, 13.5% coupon, $1000 face amount bond today.  There is a 4% chance the company will default on its bond and only be able to repay 80% of the $1000 principal amount (and none of the coupon)? What will the bond sell for today? Give your answer in dollars to the nearest penny?

Answer rating: 100% (QA)

YieldtoMaturity 48 Coupon Rate 135 ... View the full answer