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You invest $100 in a corporate bond. You estimate that with probability 0.95, the corporation will pay back the promised amount of $110 at the
You invest $100 in a corporate bond. You estimate that with probability 0.95, the corporation will pay back the promised amount of $110 at the end of one year; with probability 0.04, the corporation will default and the recovered amount will be $70; and with probability 0.01, the corporation will default and you will recover nothing. The 95%-VaR in this scenario is
Please answer with VaR calculations
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