Tim Tardashian Company (TTC) suggested that their primary customer demographic should, "... get off your [expletives redacted] and work. Y'all are really lazy." Consequently, many customers just became former customers and TTC will remain in business for only one more year. TTC projects a 10 percent probability of generating a total cash flow of $200 million and a 90% probability of generating $50 million. TTC's required debt payment at the end of the year is $80 million. The market value of TTC's outstanding debt is $54 million. The company pays no taxes. What rate of return is promised on the debt of TTC? Question 6 options:

27.0%

48.1%

29.0%

42.6%

-1.9%