(Solved): When Crane Corp. issued its 60-day commercial paper, the promised yield was 11.1 percent, whereas th ...

When Crane Corp. issued its 60-day commercial paper, the promised yield was 11.1 percent, whereas the 60-day T-bill yield was 5.3 percent. There is a 1-percent chance that Crane will default on this debt. If investors were willing to pay the full par-value amount

to purchase the paper, how much do they expect to recover in the event of a default? (Round intermediate calculations to 4 decimal places, e.g. 0.4235 and final answer to 2 decimal places, e.g. 5,275.75.) Expected recovery $