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A. Find the Expected Return for a 0 coupon bond that pays $100 in one year with probability of 0.8 or defaults with probability 0.2.

A. Find the Expected Return for a 0 coupon bond that pays $100 in one year with probability of 0.8 or defaults with probability 0.2. It currently trades for $90

B. What is the volatility of the same bond

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