The 30-day T-bill rate is 5 percent.Toronto Skaters has just issued $100 million of commercial paper at par.If the firm defaults, the commercial paper will be worth $5 million.The promised annual yield is 6.15 percent and the required rate of return is equivalent to the T-bill rate.What is the probability of default of Toronto Skaters?

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The Answer of The 30-day T-bill rate is 5 percent.Toronto Skaters has just issued $100 million of commercial paper at par.If the firm defaults, the commercial paper will be worth $5 million.The promised annual yield is 6.15 percent and the required rate of return is equivalent to the T-bill rate.What is the probability of default of Toronto Skaters?

The 30-Day T-Bill Rate Is 5 Percent