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You own a 8% bond maturing in two years and priced at 90%. Suppose that there is a 9% chance that at maturity the bond

You own a 8% bond maturing in two years and priced at 90%. Suppose that there is a 9% chance that at maturity the bond will default and you will receive only 43% of all promised payments. Assume annual coupons.

*Do not round intermediate calculations. Round your answer to 2 decimel places*

What is the bond's promised yield to maturity?

What is its expected yield?

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