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Assume that company ABC issues a zero-coupon bond, which promises to pay back 420 in two years. This bond is currently trading at 386.82. However,

Assume that company ABC issues a zero-coupon bond, which promises to pay back 420 in two years. This bond is currently trading at 386.82. However, you estimate that ABC has a 20% chance of defaulting on this loan, in which case you only receive 100. What is the expected yield to maturity on this bond (to the nearest %)?

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