Suppose a firm issued a 9% coupon bond 20years ago. The coupons are paid out semi-annually. The bond is now 10 years left until it's maturity date. But the issuer firm is having financial difficulties.

Investors believe that the firm will be able to make good on interest payments, but at the maturity date, the firm will be forced into bankruptcy. The bondholders will receive only 70% of par value. The bond is currently selling at $750.

a. What is the stated YTM?

b. What is the expected YTM?