If the market price of a 10 year zero coupon risk free bond


Question: If the market price of a 10 year Zero Coupon Risk Free Bond is $61.391 and the market OAS of a 10 year Zero Coupon Corporate Bond is 135 basis points, what is the theoretical fair value of the 10 year Zero Coupon Corporate Bond, and what is the compensation to the investor in price terms for the default risk?

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Finance Basics: If the market price of a 10 year zero coupon risk free bond
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