The Sawmill plans on closing its doors after one more year. During its last year in business the firm expects to generate a cash flow of $74,000 if the economy booms and $57,000 if it does not. The probability of a boom is 15 percent. The firm has debt of $60,000 that is due in one year. That debt has a market value of $58,000 today. Ignore taxes. The current promised return on debt is ____ percent and the expected return on debt is ______ percent.

3.78; -1.16

3.45; -.95

2.02; 3.78

2.67; 3.45