Assume that a corporation can default with constant hazard rate of 3.5%. The risk-free interest rate is 1.0%. i) What is the probability that the company defaults within one year? ii) Assume that a bond issued by this corporation has zero recovery rate R = 0%. The bond does not pay a coupon (it is a zero coupon bond), and the bond maturity is 2 years from today. What is the price of this bond? Assume bond notional $100.