Question 13 4 pts A 1-year zero-coupon Treasury bond has a promised yield of 3.5% and a 1-year zero-coupon corporate bond has a promised yield of 8.7%. The corporate bond has a default probability of 8.8%. All rates are annualized assuming periodicity of 1 (i.e. annual compounding). Given this information, what must be the expected recovery rate on the corporate bond? (If your solution is 4.44% then enter "4.44" as the answer. Precision is 0.01+/- 0.02.) Question 14 4 pts You pay $3.00 to buy a put option on bond XYZ with an exercise price of $105. The option expires in 3 months and at that time bond XYZ is trading at $91.25. What is the net profit from your option position when it expires? Assume that you do not exercise it early. MacBook Air