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.

Solution Summary

The solution explains how to calculate the realized return on a bond that defaulted