You are considering buying the bonds of a very risky company. An annual coupon bond with a $100 face value, a 1-year maturity, and a coupon rate of 22% is selling for $95. You consider the probability that the company will actually survive to pay off the bond is 80%. With 20% probability, you think that the company will default, in which case you think that you will be able to recover $40. What is the expected return on the bond?

The question is 11.16%, would anyone explain?