Assume continuous compounding. Suppose the firm has a constant default intensity = 2. The risk-free rate

Assume continuous compounding. Suppose the firm has a constant default intensity λ = 2. The risk-free rate of interest is r = 0.02. The recovery rate is φ = 0.5, and all recovery of a defaulted security is assumed to occur at the original maturity of the security. Price a two-year zero-coupon bond without default risk. Also price the same bond with default risk.