Suppose XYZ Corp. has two bonds paying semiannually according to the following table. The recovery rate for each in the event of default is 50%. For simplicity, assume that each bond will default only at the end of a coupon period. The market-implied risk-neutral probability of default for XYZ Corp. is
AGreater in the first six-month period than in the second
BEqual between the two coupon periods
CGreater in the second six-month period than in the first
DCannot be determined from the information provided
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