1. For high - yield corporate bonds, the annual default rate and recovery rate have averaged 1.20% and 30%, respectively. What is the Default loss rate?
2. In your opinion, as a financial manager would you use less or more debt than suggested by the MM and Trade-off (static) models of capital structure) and why.
3. What are the responsibility of a bond trustee
4. Assume you can purchase either 114 Canadian dollars or 11,865 Japanese yen for $100. What is the ¥/C$ cross-rate?