Question 4 A bank granted company ABC a USD 1.998, 929 loan with three years maturity. The bank estimates that if the company defaults, it will recover only 0.409 in percent) of its an exposure and that the likelihood of that happening is 0.048 (in percent). Calculate the bank's expected loss (use 4 decimal points) EL - EAD LGDPD = EAD (1-RR) * PD