A $5000 bond pays interest at j₂ = 4% and is redeemable at par in 5 years.The desired yield is j₂ = 5%.What price should you pay for this bond if the probability of default in any 6-month period is 1%? A)$4792.45 B)$4733.39 C)$4561.24 D)$4362.69

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The Answer of A $5000 bond pays interest at j₂ = 4% and is redeemable at par in 5 years.The desired yield is j₂ = 5%.What price should you pay for this bond if the probability of default in any 6-month period is 1%? A)$4792.45 B)$4733.39 C)$4561.24 D)$4362.69

A $5000 Bond Pays Interest at J2 = 4% and Is

A $5000 Bond Pays Interest at J₂ = 4% and Is