Good Time Company is a regional chain department store. It will remain in business for one more year. The probability of a boom year is 60 percent and the probability of a recession is 40 percent. It is projected that the company will generate a total cash flow of $ 218 million in a boom year and $ 82 million in a recession. The company's required debt payment at the end of the year is $ 122 million. The market value of the company's outstanding debt is $ 93 million. The company pays no taxes.

Requirement 1:

What payoff do bondholders expect to receive in the event of a recession? (Do not include the dollar sign ($). Enter your answer in dollars, not millions of dollars. (e.g., 1,234,567))

Expected payoff

$

Requirement 2:

What is the promised return on the company's debt? (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))

Promised return

%

Requirement 3:

What is the expected return on the company's debt? (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))

Expected return

%