Whiskey business is outstanding debt or 5% bonds, paying interest annually and maturing one year from today. The bonds currently sell for $571 per $1000 par value. The company is experiencing severe financial difficulties and analysts predict that there is a 59% probability that the company will go bankrupt within the year. If bankruptcy occurs, bondholders are predicted to receive only 25% of the promised cash flow principal plus coupon.

1. what is the current promised yield to maturity (assuming that bondholders receive all promised)

Q: current Yield to Maturity = ___ %

2. what is the current yield to maturity assuming that default occurs? (round answer to 1 decimal place. +/- if any.

Q: Current yield to maturity = ____%

3. What is the current expected yield to maturity? (rounded to 2 decimal places) +/- if any.

Q: Current yield to maturity = ____%