Grummon Corporation has issuedzero-coupon corporate bonds with afive-year maturity(assume

$ 100$ face valuebond). Investors believe there is a 10 % chance that Grummon will default on these bonds. If Grummon doesdefault, investors expect to receive only

65 cents per dollar they are owed. If investors require a

6 %expected return on their investment in thesebonds,

what will be the

a.price of thesebonds?

b. yield to maturity on thesebonds?