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You own a 5% bond maturing in two years and priced at 87%. Suppose that there is a 10% chance that at maturity the bond

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You own a 5% bond maturing in two years and priced at 87%. Suppose that there is a 10% chance that at maturity the bond will default and you will receive only 40% of the promised payment. What is the bond's promised yield to maturity? (Do not round intermediate calculations. Round your answer to decimal places.) What is its expected yield?(Do not round intermediate calculations. Round your answer to 2 decimal places.)

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