Realized return on a bond that defaulted
Bond with a 9.5% coupon and return of $1,000 principal in 10 years. You paid $500 for the bond. What is the realized return on your bond if the company defaults and paid no coupon payments for three years, but then made a $150 distribution at the end of 3.5 year after the firm liquidated.
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The solution explains how to calculate the realized return on a bond that defaulted
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