Please help me figure out parts (a), (b), and (c). Please calculate this...
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Please help me figure out parts (a), (b), and (c).
Please calculate this probability.
Please verify all answers are correct.
It is 2030 and the yields on corporate bonds are as follows: Tau Corporation wishes to raise $10 million by an issue of 9%10-year bonds. Assume a face value of $100. What will be the likely issue price (as a percent of face value) if Tau is rated (a) Aaa, (b) A, or (c) Ba ? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Upsilon's assets have a current market value of $100. Its debt has a face value of $60, and it matures in one year. Assume a risk-free rate of interest is 5%. Suppose that the standard deviation of the return on Upsilon's assets is 50%. Calculate the probability that the company will default. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places
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