Question 30 6 pts United Airlines has its troubles these days. The company has a credit rating of "B" and many believe that is too high. You think there is a 40% chance the company will file for bankruptcy over the next year. If United does file for bankruptcy, you expect to lose 60% of your money. You are thinking of investing $1,000,000 in a United Airline bond that matures in 1 year. The bond you are looking at has a Par value of $100 and it pays a 5% coupon at the end of the year, and the risk-free rate is 2%. (Assume 1 annual coupon) (1) What is the expected loss on the bond? (2) What is a fair price for the bond? (3) What is the yield to maturity on the bond? Question 30 6 pts United Airlines has its troubles these days. The company has a credit rating of "B" and many believe that is too high. You think there is a 40% chance the company will file for bankruptcy over the next year. If United does file for bankruptcy, you expect to lose 60% of your money. You are thinking of investing $1,000,000 in a United Airline bond that matures in 1 year. The bond you are looking at has a Par value of $100 and it pays a 5% coupon at the end of the year, and the risk-free rate is 2%. (Assume 1 annual coupon) (1) What is the expected loss on the bond? (2) What is a fair price for the bond? (3) What is the yield to maturity on the bond