BOND PRICING WITH DEFAULT (THINK OF THE STRUCTURE WE DISCUSSED IN CLASS AND TRY TO SOLVE THIS. IT IS NOT TRIVIAL) Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of 1,000, 12 years to maturity, and a coupon rate of 8 percent paid annuallly. If the yield to maturity is 9 percent, what is the current price of the bond? Now the key difference is that every period, the firm may default with a probability of p = 0.02. The YTM remains constant at 9% Assume the recovery rate is now 50%. That is in case of default, bond holders will only recover 50% of the face value. Calculate the price of the bond now,