Question 35 1 pts The TrunkLine Company will earn $60 in one year if it does well. The debtholders are promised payments of $35 in one year if the firm does well. If the firm does poorly, expected earnings in one year will be $30 and the repayment will be $20 because of the dead weight cost of bankruptcy. The probability of the firm performing poorly or well is 50% If bondholders are fully aware of these costs what will they pay for the debt? The interest rate on the bonds is 10% $25,00 $27.50 $29.55 $32.50 $35.00