Imagine somebody offered you the possibility to invest in a bond of a company. The bond has a maturity of 41 years and is pretty risky. In fact, in the 41 years to maturity, the issuer is likely to default on average twice and the bond is likely to be in default in about two out of five years. Would you invest in this bond? And if so, how large do you think the return on this investment will be?
Would you invest in these bonds?
Would you invest in these bonds?
Would you invest in these bonds?
Imagine somebody offered you the possibility to invest in a bond of a company. The bond has a maturity of 41 years and is pretty risky. In fact, in the 41 years to maturity, the issuer is likely to default on average twice and the bond is likely to be in default in about two out of five years. Would you invest in this bond? And if so, how large do you think the return on this investment will be?