The ytm on 5-year govt bond is 5 the ytm on aaa rated bond


The YTM on 5-year govt. bond is 5%. The YTM on AAA rated bond is 5.8% and B rated bond is 9.8%. Suppose the bond holder expects same rate of return on all these bonds , what is the implied probability of default?

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Finance Basics: The ytm on 5-year govt bond is 5 the ytm on aaa rated bond
Reference No:- TGS02221988

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