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Jennthejelly Jennthejelly
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6 months ago
Laurentide Resorts is issuing commercial paper with 60 days to maturity. In case of default, the investor will receive 40 cents on the dollar. The quoted rate for the issue is 7%, and an equivalent government-backed security's rate is 6%. What is the probability of default?

▸ 1.0%

▸ 1.49%

▸ 0.94%

▸ 98.51%
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
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toastercattoastercat
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6 months ago
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