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Consider a two-period coupon bond, with face value M=100, survival rate is 0.9, and the...

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Finance

Consider a two-period coupon bond, with face value M=100, survival rate is 0.9, and the per period coupon rate is 4%. The bond is currently trading at 98. If the current per-period risk free rate is 1%, what is the implied recovery rate?

A.

above 65%
B.

Between 50% and 55%
C.

between 55% and 65%
D.

Below 50%

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