You own a bond with an annual rate of 7% maturing in two years and priced at 86%. Suppose the probability is 10% that at maturity the bond will default and you will recieve only 44% of the promised payment. Assume a face value of $1,000.

a. What is the bond's promised yield to maturity? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Promised yield = ____%

b. What is its expected yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places).

Expected yield = _____%