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One period loan contract has a principal amount of 100000 EUR. The probability of default is 5.5 %. In case of default on average 50%

One period loan contract has a principal amount of 100000 EUR. The probability of default is 5.5 %. In case of default on average 50% of principal value of the loan is lost due to the legal costs and fire sales price of the collateral. What is Expected Loss of this loan contract?

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