In the following scenario, how much money does the protection buyer receive on this three year bond? The bond par value = $1,000. Bond market value = $872. Risk free interest rate = 4.0%. Non-defaulted bond value = $889.
A) $111
B) $128
C) $872
D) $889

Question

Quizplus · Accepted Answer

The Answer of In the following scenario, how much money does the protection buyer receive on this three year bond? The bond par value = $1,000. Bond market value = $872. Risk free interest rate = 4.0%. Non-defaulted bond value = $889.
A) $111
B) $128
C) $872
D) $889

In the Following Scenario, How Much Money Does the Protection