A corporate bond has a maturity of one year, an annual coupon rate of $5\%,$ and a market price equal to par value. The actual default rate is estimated to be $2\%$ with a recovery rate of $40\%.$ The risk$-$free rate is $3\%.$ At the end of one year,

a$.$ What is the expected exposure to default loss for the bond?

b$.$ What is the loss given default for the bond?

c$.$ What$$s the expected future value $($expected payoff$)$ of the bond at maturity?