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HELP CENTER The risk of portfolio P is the same as the risk of...

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Accounting

HELP CENTER
The risk of portfolio P is the same as the risk of portfolio Q.
Question 4
01.5pts
Consider two one-year bonds that pay no coupon interest. Bond 1 is a risky bond with an annual yield to maturity (YTM) of 8%. Bond 2 is a Treasury bond with a YTM of 5%.
The risky bond has a 5% probability of default (PD) and a loss given default (LGD) of 20%. Given this information, what is the approximate risk premium on the risky bond?
Question 5
1.5/1.5 pts
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