Expected return on investment in bonds

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GoGo Corporation has issued zero-coupon corporate bonds with a five-year maturity. Investors believe there is a 20% chance that GoGo will default on these bonds. If GoGo does default, investors expect to receive only 50 cents per dollar they are owed. If investors require a 6% expected return on their investment in these bonds, what will be the price and yield to maturity on these bonds?

Reference no: EM132406737

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