Business, 26.02.2020 17:02 peno211

The Pension Fund buys an insurance contract that will pay 20 million if either bond is downgraded to C. If both bonds are downgraded the contract still pays 20; if neither is downgraded the contract pays nothing. Find the expected value of the payoff of the insurance contract.

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The Pension Fund buys an insurance contract that will pay 20 million if either bond is downgraded to...

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