Grummon Corporation has issued zero-coupon corporate bonds with a five-year maturity (assume $100 face value bond). Investors believe there is a 15%chance that Grummon will default on these bonds. If Grummon does default, investors expect to receive only 40 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.