Credit Risk Measurement for ABC Corp's Bond

ABC Corp is issuing a new bond with a face value of $1,000 and a coupon rate of 5%. The bond is expected to be rated BBB by a major credit rating agency. Investors are concerned about the overall credit risk of the bond due to potential negative changes in the economic environment that could impact ABC Corp's profitability.

In assessing the credit risk of this bond, investors often use various metrics to evaluate the likelihood of default. One of the key metrics is the probability of default (PD), which measures the likelihood that the issuer will default on its obligations over a specified period. Another important metric is the loss given default (LGD), which estimates the loss incurred by an investor in the event of default.

Given this information, which of the following metrics best captures the risk-adjusted pricing of this bond?