The following formula expresses the expected amount lost when a borrower defaults on a loan where PD is the probability of default on the loan, EAD is the exposure at default(the face value loan) and LGD is the loss given default(expressed as a decimal). For a certain class of mortgages 6% of the borrowers are expected to default the face value of these mortgages averages $260,000 on average, the bank recovers 70% of the mortgaged amount if the borrower defaults by sellingthe property. The expected loss becomes the interval {$_ and $_} Somebody please help.