Assume the following values for probability of default

ssume the following values for probability of default t+1 t+2 t+3 t+4 t+5A 0. 3 0. 3 0. 3 0. 3 0. 3B 0 0 0 0. 5 0. 5Assume a 5 year, 10%, $1000 face value bond is bought at par: $1000. Calculate the yields on the two bonds. Which is higher?

Assume the following values for probability of default

ssume the following values for probability of default

t+1 t+2 t+3 t+4 t+5

A 0.3 0.3 0.3 0.3 0.3

B 0 0 0 0.5 0.5

Assume a 5 year, 10%, $1000 face value bond is bought at par: $1000. Calculate the yields on the two bonds. Which is higher?