RETURN TO BOND HOLDERS d 42. The TrunkLine Company debtholders are promised payments of $35 if the firm does well, but will receive only $20 if the firm does poorly. Bondholders are willing to pay $25. The promised return to the bondholders is approximately: 2.9% b 16.9% 27.3% d 40.0% e. 100% doo Difficulty level: Medium A. PRE-TAX RETURN ON BONDS d43. An investment is available that pays a tax-free 6%. The corporate tax rate is 30%. Ignoring risk, what is the pre-tax retuun on taxable bonds? 4.20% b. 0.00% 7.67% d. 8.57% None of the above. C. e