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2. Suppose a firm issued a 10% coupon bond (annual coupon) 10 years ago. The bond now has 5 years left until its maturity

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2. Suppose a firm issued a 10% coupon bond (annual coupon) 10 years ago. The bond now has 5 years left until its maturity date, but the firm is having financial difficulties. Investors believe that the bond will make the remaining coupon payments but will pay off only 60% of face value at maturity. The face value of the bond is $1,000 and the bond is currently selling at $800. What are the promised and expected yield to maturity of this bond, respectively? (Round to basis points.)

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