Suppose you are considering buying a one-year debenture priced at $10,000 yielding 7 percent a year.There is a 10 percent chance the issuer will default on the payments and principal.What is your best course of action?

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Suppose you are considering buying a one-year debenture priced at $10,000 yielding 7 percent a year.There is a 10 percent chance the issuer will default on the payments and principal.What is your best course of action?






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