Sludge Corporation has two bonds outstanding, each with a face value of $2.85 million. Bond A is a senior bond; bond B is subordinated. Sludge has suffered a severe downturn in demand, and its assets are now worth only $4.70 million. If the company defaults, what payoff can the holders of bond B expect? I do not need to know the numerical answer, simply how to calculate a senior bond payoff