Assume CRT debtholders are promised payments in one year of $35 if the firm does well and $20 if the firm does poorly.There is a 50/50 chance of the firm doing well or poorly.If debtholders are willing to pay $25.50 today to purchase this debt,what is the promised return to those debtholders?
A)7.3 percent
B)6.8 percent
C)1.7 percent
D)7.8 percent
E)8.2 percent

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The Answer of Assume CRT debtholders are promised payments in one year of $35 if the firm does well and $20 if the firm does poorly.There is a 50/50 chance of the firm doing well or poorly.If debtholders are willing to pay $25.50 today to purchase this debt,what is the promised return to those debtholders?
A)7.3 percent
B)6.8 percent
C)1.7 percent
D)7.8 percent
E)8.2 percent

Assume CRT Debtholders Are Promised Payments in One Year of $35