BondswithDefault
Risk
Hfema between government
ecorpora
bonbond
ample
1ooo
1year zero.couponcorporatebond
50 probability
discountrate
5.1
が6 probability thefirmwillrepayonly 900
hemarketpriceof thebond is
1000 054900
に0.5 l to 51
903.9
1
YIM な にslang 1 10.63
Creditrating
I
Debt
holders
relyon CreditRating
のStandard andPoor's
dD
のMoody's
のFitch
these agencies
assign a ratingtotheissuereachAgencyhastheirownparallelscale
OnemeasureofDefaultRisk
DefaultRiskistheriskthatan issuerwill
notmake allthepromisedpayments on a badontime
efaultriskpremium
thedifference between yieldson corporatebonds foreachcreditratingandTreasurybonds
のTreasurybondsareassumed tobezero.risk
Risk
Hfema between government
ecorpora
bonbond
ample
1ooo
1year zero.couponcorporatebond
50 probability
discountrate
5.1
が6 probability thefirmwillrepayonly 900
hemarketpriceof thebond is
1000 054900
に0.5 l to 51
903.9
1
YIM な にslang 1 10.63
Creditrating
I
Debt
holders
relyon CreditRating
のStandard andPoor's
dD
のMoody's
のFitch
these agencies
assign a ratingtotheissuereachAgencyhastheirownparallelscale
OnemeasureofDefaultRisk
DefaultRiskistheriskthatan issuerwill
notmake allthepromisedpayments on a badontime
efaultriskpremium
thedifference between yieldson corporatebonds foreachcreditratingandTreasurybonds
のTreasurybondsareassumed tobezero.risk