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The table below shows the forecast cash flow information of Good Time Inc. for the next year. The required debt payment in the next year

The table below shows the forecast cash flow information of Good Time Inc. for the next year. The required debt payment in the next year is $100 million, with the current market value of $67 million. The company pays no tax. If you invest in the corporate debt of Good Time Inc. today, what is your expected return on this investment?

Cash flow in the next year
Economy Probability Amount
Boom 0.5 148
Recession 0.5 61

a. 11.29%

b. 20.15%

c. 15.54%

d. 30.33%

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