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5 years is maximum tire life! Sounds like something a tire salesman would say...
My dad gave me his '76 CB750 motorcycle with original tires and I rode it until the tread was worn out.
Recently I found a gouge on one of my car tires sidewall. I rotated that tire to the back just in case it blows out, but I don't expect that will happen.
As others have said, running 40psi didn't cause the bulge. Likely a manufacturing defect or something the tire ran over caused damage. If it were me, I'd move the tire to the rear, air them back up to 40psi, and run them down to the minimum tread you can tolerate.
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