Compute the promised yield to maturity and expected return to maturity on a default-risky 3-year pure-discount corporate bond that has a current price of $543.With a probability of 0.6, the issuer will repay the principal of $1,000 at maturity.However, the probability is 0.4 that the issuer will default, in which case bondholders will receive only $200 per bond.
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