The TrunkLine Company debtholders are promised payments of £35 if the ﬁrm does well, but will receive only £20 if the ﬁrm does poorly.Bondholders are willing to pay £25.The promised return to
The bondholders is approximately:
A)2.9%
B)16.9%
C)27.3%
D)40.0%
E)100%

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The Answer of The TrunkLine Company debtholders are promised payments of £35 if the ﬁrm does well, but will receive only £20 if the ﬁrm does poorly.Bondholders are willing to pay £25.The promised return to
The bondholders is approximately:
A)2.9%
B)16.9%
C)27.3%
D)40.0%
E)100%

The TrunkLine Company Debtholders Are Promised Payments of £35 If