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Fixed Income
Fixed Income
Easy
Taverton Corp issues a 5-year bond. The market estimates its annual probability of default at 2.5% and loss given default at 45%. The credit spread on the bond is most likely closest to:
A
112.5 bps
B
250 bps
C
45 bps
D
200 bps
Select an answer to continue
Tags
#credit-spreads
#probability-of-default
#loss-given-default
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CFA Level I — Fixed Income Practice Question | AcadiFi | AcadiFi