question archive What minimum weighted average coupon does a distressed portfolio needs to achieve if wants to earn a return at least equal to the risk-free rate of 5% after defaults if expects a 25% default rate and a 50% recovery rate on any bonds that do default?
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What minimum weighted average coupon does a distressed portfolio needs to achieve if wants to earn a return at least equal to the risk-free rate of 5% after defaults if expects a 25% default rate and a 50% recovery rate on any bonds that do default?
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