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Suppose BCE Inc. has outstanding five-year bonds with a yield to maturity of 4.75%. You believe that BCE Inc. has an annual default rate of

Suppose BCE Inc. has outstanding five-year bonds with a yield to maturity of 4.75%. You believe that BCE Inc. has an annual default rate of 1% and an expected loss rate of 40% in the event of default. What is your estimate of the expected return of those bonds

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