Good time company is a regional chain department store. it will remain in business for one more year. the probability of a boom year is 70 percent and the probability of a recession is 30 percent. it is projected that the company will generate a total cash flow of $191 million in a boom year and $82 million in a recession. the company's required debt payment at the end of the year is $116 million. the market value of the company’s outstanding debt is $89 million. the company pays no taxes.

a. what payoff do bondholders expect to receive in the event of a recession?
b. what is the promised return on the company's debt?
c. what is the expected return on the company's debt?