Grummon Corporation has issued? zero-coupon corporate bonds with a? five-year maturity? (assume $ 100$ face value? bond). Investors believe there is a 10 % chance that Grummon will default on these bonds. If Grummon does? default, investors expect to receive only 65 cents per dollar they are owed. If investors require a 6 %expected return on their investment in these? bonds, what will be the
a. price of these? bonds?
b. yield to maturity on these? bonds?