You own a bond with an annual coupon rate of 5% maturing in two years and priced at 85%.

Suppose that there is a 23% chance that at maturity the bond will default and you will receive

only 45% of the promised payment. Assume a face value of $1,000.

A. What is the bonds promised yield to maturity?

B. What is its expected yield (i.e., the possible yields weighted by their probabilities)?

please show how to solve using excel. thank you!