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When Sheridan Corp. issued its 60 -day commercial paper, the promised yield was 11.1 percent, whereas the 60 -day T-bill yield was 5.5 percent. There is a 1-percent chance that Sheridan will default on this debt. If investors were willing to pay the full par-value amount ($1,000) to purchase the paper, how much do they expect to recover in the event of a default? (Round intermediate calculations to 4 decimal places, e.g. 0.4235 and final answer to 2 decimal places, e.g. 5,275.75.) Expected recovery $ ______.
Sagot :
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