WestAce will generate a terminal cash ow of $370M or $110M in one year, each with equal likelihood. WestAces outstanding debt has a correct market value today of $120M and is due in a year. The cost of debt (rD) is 15% and the unlevered cost of equity (rU) is 20%. The capital market is perfect (no taxes, distress costs, etc.) What is the yield to maturity on the WestAce debt? 34.3% 36.3% 38.3% 40.3%