An all-equity firm has the following expected values in one year, depending on the state of the economy: State Recession Boom Probability 0.3 0.7 Expected firm value 60 230 The firm's cost of capital is 20%. Part 3 | Attempt 1/3 for 10 pts. From now on, assume that you want to borrow $70 for one year to buy the firm. The quoted interest rate on the loan is 12%. What is the face value of the bond? 78