A company has assets valued at $1,000 currently, and has debt outstanding with a face value of $850 that is due in 2 years. Annually, the assets are expected to grow at 4% with a volatility of 20%. The risk-free rate is 2%. Estimate the probability of default, expected loss and the present value of the expected loss on the company's debt.

Suppose the Talcum Corporation has promised to pay $500 on 31 March 2024. The risk-free yield to that date is 1.325%, and the credit spread for Talcum is 0.65%. Today is 10 Oct 2019. What are the credit-adjusted valuation, risk-free valuation and PV of expected loss on that promise?