3. An investor holds a portfolio of $ 100 million. This portfolio consists of A-rated bonds ($40million) and BBB-rated bonds ($60million). Assume that the one-year probabilities of default for a-rated and BBB-rated bonds are 3% and 5%, respectively, and that they are independent. If the recovery value for A-rated bonds in the event of default is 50% and the recovery value for BBB-rated bonds is 25%, what is the one-year expected credit loss from this portfolio? (final answer)