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Let us assume that the one year risk-free interest rate is 3%. Now imagine that ...

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Let us assume that the one year risk-free interest rate is 3%. Now imagine that the yield of corporate bond maturing one year from today is 14.7%. The current market price of corporate bond is 166.51 EUR.

Please calculate the probability of default of the corporate bond i.e. the likelyhood that the corporation will default in one year.

  Present your answer in percent without inserting percentage sign (%). 

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