Problem 4. Consider a 20-year risk-free bond with principal of $1000 and an interest rate of 10% per year. Interest is compounded annually and the accumulated interest is paid at maturity. Consider a 20-year risky bond with principal of $1000 and an interest rate of 16% per year. If the bond defaults, no payment is available. Otherwise, interest is compounded annually and the accumulated interest is paid at maturity. If the EPV of the two bonds are equal at issuance, what is the median time until default or maturity of the risky bond? Problem 4. Consider a 20-year risk-free bond with principal of $1000 and an interest rate of 10% per year. Interest is compounded annually and the accumulated interest is paid at maturity. Consider a 20-year risky bond with principal of $1000 and an interest rate of 16% per year. If the bond defaults, no payment is available. Otherwise, interest is compounded annually and the accumulated interest is paid at maturity. If the EPV of the two bonds are equal at issuance, what is the median time until default or maturity of the risky bond