Grummon Corporation has issued zero-coupon corporate bonds with a five-year maturity (assume $100 face value bond). Investors believe there is a 40 % 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 price and yield to maturity on these bonds?

Note:

Assume annual compounding.