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A company has issued a 1-year zero-coupon bond with a face value of $10000. There...

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Accounting

A company has issued a 1-year zero-coupon bond with a face value of $10000. There is a 35% probability of default. In the event of a default, the bond issuer is expected to pay $7,514. The current risk-free rate is 5%. What is the risk premium of this bond?
[note: your answer should be in percentage terms with at least two decimal places, for example 7.23]
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