a. on the table below fill in the expected payoffs

b. what amount would pay bondholders in full at maturity?

c. which investment would bondholders prefer and why?

d. Would stockholders prefer the same investment as the bondholders?

AYZ, Inc. has su bond. y. This problem is very similar to one of your homework problems. XYZ, Inc. has $140 million ... Shock in debt and $60 million in equity. The debt matures in 1 year and pays 10% interest. XYZ is considering two projects, each requiring an up-front investment of $200 million. Each investment will last for 1 year, and the payoff from each depends on the state of the economy, either a recession or an expansion. There is a 50% chance of either state occurring. A partial payoff table is below. a. Fill in the missing expected payoffs in the table below. 05 &1800+ -51260 Payoff in recession $180m $100m Payoff in expansion $260m Investment A Investment B $340m