Hi,I am trying to apply matlab to get the prices of convertible bonds using Tsiveriotis - Fernandes approach. I have a problem figuring out whether the interest rates used to discount the cash flow of the risk bond are before or after default interest rates. Matlab doesn't ask me about the recovery rates . so intuitively, I should assume that interest rates are before defaut interest rates. However, when reading Ayache, forsyth and vetzal (Valuing convertible bonds with credit risk.page 5 first paragraph) when discussing the valuation of risky zero coupon bond they mention that the spread is P(1-R) where p is the hazard rate and R is the recovery. I am confused a little bit can anyone clarify the point for me?best wishesJ