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A company rated BB+ by S&P issues a zero coupon bond with one year to...

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Accounting

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A company rated BB+ by S&P issues a zero coupon bond with one year to maturity, priced at $920 per $1,000 face value. If the default probability at the end of the year is 5%, and the recovery amount in the event of default is $750 per $1,000 face value, what is the yield to maturity? 5.67%6.89%7.33%8.29%

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