Today is 1 July 2020, William plans to purchase a corporate bond with a coupon rate...

Today is 1 July 2020, William plans to purchase a corporate bond with a coupon rate of j₂ = 4.36% p.a. and face value of 100. This corporate bond matures at par. The maturity date is 1 January 2025. The yield rate is assumed to be j₂ = 4.91% p.a. Assume that this corporate bond has a 2.4% chance of default in any six-month period during the term of the bond. Assume also that, if default occurs, William will receive no further payments at all. Calculate the purchase price for 1 unit of this corporate bond. Round your answer to three decimal places.

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Answer:-

According to data- Calculate the purchase price for 1 unit of this corporate bond.

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please give me an upvote

ekkarill92 answered 1 year ago

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