Risky Business' outstanding debt is 6% bonds, paying interest annually and maturing one year from today. The bonds currently sell for $556 per $1,000 par value. The company is experiencing severe financial difficulties and analysts predict that there is a 63% probability that the company will go bankrupt within the year. If bankruptcy occurs, bondholders are predicted to receive only 30% of the promised cash flow (principal plus coupon).

a.What is the current promised yield to maturity (assuming that bondholders receive all promised)?(Round your answer to 1 decimal place. Use minus sign to enter negative values, if any.)

Current yield to maturity%

b.What is the current yield to maturity assuming that default occurs?(Round your answer to 1 decimal place.Use minus sign to enter negative values, if any.)

Current yield to maturity%

c.What is the current expected yield to maturity?(Round your answer to 2 decimal places. Use minus sign to enter negative values, if any.)

Current yield to maturity%