Answer:
pay for the debt = $17.76
Step-by-step explanation:
given data
earn = $60
debt holders payments = $40
earnings = $10
repayment = $5
probability = 40%
to find out
what will they pay for the debt
solution
we consider here interest rate on the bonds = 7%
so we now get here pay for the debt that is express as
pay for the debt = ( debt holders payments × probability + earn × repayment ) ÷ ( 1 + interest rate ) ..........................1
put here value we get
pay for the debt =

pay for the debt = $17.76