A company is promising a coupon payment of $$46$ in $2\mathrm{.}03$ years. A risk free government bond of the same maturity is yielding $1\mathrm{.}66\%$ per year. The credit spread for the promised payment by the company is $1\mathrm{.}24\%$ per year. Both the yield and the spread are stated on a continuously compounded basis.

What is the present value of the expected loss on the promised payment?

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$1\mathrm{.}11$ margin of error $\frac{+}{-}50$