Consider a firm that will produce one unit of gold a year from today. The price of gold next

year is either $500$ with probability $p=0\mathrm{.}8,$ or $200$ with probability $1-p.$ Assume gold

price risk is diversifiable, and the riskless rate is $5\%($continuously compounded$).$

Consider a firm with outstanding debt with face value $F=250.$ If the firm files for

bankruptcy, bankruptcy costs are $50.$ Assume that the firm pays no taxes.

Suppose that the firm does not hedge its gold price risk. What is the $($continuously

compounded$)$ yield on the firm's risky debt? Submit your answer in decimal format $($e$.$g$.$

$0\mathrm{.}50,$ NOT $50\%.$