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You own a bond with an annual coupon rate of 7 % maturing in two years and priced at 8 6 % . Suppose that

You own a bond with an annual coupon rate of 7% maturing in two years and priced at 86%. Suppose that there is a 10% chance that at maturity the bond will default and you will receive only 44% of the promised payment. Assume a face value of $1,000.
A)What is the bonds promised yield to maturity? =15.69%
B) What is its expected yield (i.e., the possible yields weighted by their probabilities)? answer to A is 15.69 just need help with this one

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