[Solved] A bond with a $1000 face value, paying 10

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A bond with a $1000 face value, paying 10% coupon rate and one year to mature is selling at 98 (98% of the face value).

A bond with a $1000 face value, paying 10% coupon rate and one year to mature is selling at 98 (98% of the face value). The issuing company faces 30% default probability paying 40 cents on a dollar. What is the expected return on the bond?

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