When Collingwood Corp.issued its 60-day commercial paper the promised yield was 9%, whereas the 60-day T-bill yield was 6%.There is a 2% chance that Collingwood will default on this debt.If investors were willing to pay the full par value amount ($1,000)to purchase the paper, how much do they expect to recover in the event of a default?

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The Answer of When Collingwood Corp.issued its 60-day commercial paper the promised yield was 9%, whereas the 60-day T-bill yield was 6%.There is a 2% chance that Collingwood will default on this debt.If investors were willing to pay the full par value amount ($1,000)to purchase the paper, how much do they expect to recover in the event of a default?