What would the interest rate on usairways bonds need to be, Financial Management

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What would the interest rate on usairways bonds need to be

Investors perceive a 20% likelihood that USAirways will go bankrupt and default on its debt. Suppose that the interest rate on a 15 year treasury bond is 3%. What would the interest rate on USAirways bonds need to be in order to make investors indifferent between them and Treasury bonds?

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Financial Management: What would the interest rate on usairways bonds need to be

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Financial Management: What would the interest rate on usairways bonds need to be

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