Miller Tool plans on closing its doors after one more year. During its last year in business the firm expects to generate a cash flow of $89,000 if the economy booms and $61,000 if it does not. The probability of a boom is 30 percent. The firm has debt of $65,000 that is due in one year. That debt has a market value of $57,000 today. Ignore taxes. The current promised return on debt is ____ percent and the expected return on debt is ______ percent.

a) 11.18 and 14.04

b) 11.18 and 9.12

c) 14.04 and 9.12

d) 14.04 and 11.18