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A corporate bond matures in one year. The bond promises a coupon of $50 and principal of $1,000 at maturity. If the bond has a

A corporate bond matures in one year. The bond promises a coupon of $50 and principal of $1,000 at maturity. If the bond has a 10% probability of default and payment under default is $400, calculate the expected payment from the bond.

$1,050 A $1,000 B $400 C $985 D

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