In? mid-2009, Rite Aid had? CCC-rated, 6?-year bonds outstanding with a yield to maturity of 17.3...

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In? mid-2009, Rite Aid had? CCC-rated, 6?-year bonds outstandingwith a yield to maturity of 17.3 %. At the? time, similar maturityTreasuries had a yield of 3 %. Suppose the market risk premium is 5% and you believe Rite? Aid's bonds have a beta of 0.31. Theexpected loss rate of these bonds in the event of default is 60 %.a. What annual probability of default would be consistent with theyield to maturity of these bonds in? mid-2009? b. In? mid-2015,Rite-Aid's bonds had a yield of 7.1 %?, while similar maturityTreasuries had a yield of 1.5 %. What probability of default wouldyou estimate? now?
a. What annual probability of default would beconsistent with the yield to maturity of these bonds in?mid-2009?
The required return for this investment is _____?%. (Round totwo decimal? places.)
The annual probability of default is _?%. (Round to twodecimal? places.)
b. In? mid-2015, Rite-Aid's bonds had a yieldof 7.1%?, while similar maturity Treasuries had a yield of 1.5%.What probability of default would you estimate? now?
The probability of default will be _____%. ?(Round to twodecimal? places.)

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In? mid-2009, Rite Aid had? CCC-rated, 6?-year bonds outstandingwith a yield to maturity of 17.3 %. At the? time, similar maturityTreasuries had a yield of 3 %. Suppose the market risk premium is 5% and you believe Rite? Aid's bonds have a beta of 0.31. Theexpected loss rate of these bonds in the event of default is 60 %.a. What annual probability of default would be consistent with theyield to maturity of these bonds in? mid-2009? b. In? mid-2015,Rite-Aid's bonds had a yield of 7.1 %?, while similar maturityTreasuries had a yield of 1.5 %. What probability of default wouldyou estimate? now?a. What annual probability of default would beconsistent with the yield to maturity of these bonds in?mid-2009?The required return for this investment is _______?%. (Round totwo decimal? places.)The annual probability of default is _____?%. (Round to twodecimal? places.)b. In? mid-2015, Rite-Aid's bonds had a yieldof 7.1%?, while similar maturity Treasuries had a yield of 1.5%.What probability of default would you estimate? now?The probability of default will be _______%. ?(Round to twodecimal? places.)