Grummon Corporation has issued zero-coupon corporate bonds with a five-year maturity (assume $ 100 face value bond). Investors believe there is a 20%chance that Grummon will default on these bonds. If Grummon does default, investors expect to receive only 50 cents per dollar they are owed. If investors require a 6% expected return on their investment in these bonds, what will be the

a. price of these bonds?

b. yield to maturity on these bonds? Note: Assume annual compounding.

a. What will be the price of these bonds?

The price of these bonds is ________. (Round to the nearest cent.)

b. What will be the yield to maturity on these bonds, assuming the default does not materialize?

The yield to maturity on these bonds is ______%. (Round to two decimal places.)