Given the following information:

1-year zero-coupon Corporate yield: 9.5%

2-year zero-coupon Corporate yield: 19.0%

1-year zero-coupon Treasury bonds yield: 7.5%

2-year zero-coupon Treasury bonds yield: 15.0%

Recovery rate of Corporate Bond: 0.23

What is this firm's implied cumulative probability of default (in percentage)?

NOTE: Round all calculations to 4 decimal places. If your final number is 0.1234 then write 12.34%

2.Consider an 21 year 11.1 % coupon bond with $ 1,000 par selling for $ 932 (semiannual coupons).

Suppose that the first par call for this bond is 13 years from now.

Assume that the bond is putable at par in 3 years.

If the call/put dates above are the only ones, what is the bond's yield to worst?

NOTICE: Round ALL calculations to 4 decimal places. Only round what you input in the blank to 2 decimal places. If you get 1.2345 then write 1.23.