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You observe the following 1-year yields on a corporate and government bonds over the course of several days: Corp yield Govt Yield 3.5 1.9 3.11

You observe the following 1-year yields on a corporate and government bonds over the course of several days:

Corp yield Govt Yield
3.5 1.9
3.11 1.42
3.93 1.37
3.44 1.51
3.48 1.63

What is your estimate of expected annual percentage loss on the risky bond?

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