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,

1. What is the expected exposure to default loss for the bond?
 
2. What is the loss given default for the bond?
 
3. What's the expected future value (expected payoff) of the bond at maturity?