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You own a bond with an annual coupon rate of 8% maturing in two years and priced at 85%. Suppose that there is a 11%

You own a bond with an annual coupon rate of 8% maturing in two years and priced at 85%. Suppose that there is a 11% 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.

What is the bonds promised yield to maturity?

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

Note: Enter your answers as a percent rounded to 2 decimal places.

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