financial math

A corporate bond has face value E200 and maturity in four years; it pays annual coupons of E9 (in arrears) and has a yield of 3.5%. The corresponding riskless bond with the same face value, maturity and coupons has a yield of 2.5%. The present value of the expected loss on the corporate bond over the lifetime of the bond is E Suppose that the corporate bond can default just prior to a coupon payment and the recovery amount is 685. The average default probability per year is to four decimal places (note: this is not a percentage)