4. Consider a 3- year zero coupon bond (face value $100) in an environment where the interest rate is constant at 4%. However there is a 1% probability of default each year with a recovery rate of 60% of face. In other words, each year there is a 1% chance the bond defaults and making a single payment of $60. No additional payments are made after default. What is the expected value of the bond? Remember to present value the default payment