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A junk bond with a beta of 0.4 will default with 20% probability. If it does, investors receive only 60% of what is due to

A junk bond with a beta of 0.4 will default with 20% probability. If it does, investors receive only 60% of what is due to them. The risk free rate is 3% per annum and the risk premium is 5% per annum. What is the price of the bond, its promised rate of return and expected rate of return?

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