A firm has 65% probability of being worth $100 million and a 35% probability of being worth $130 million.  There is one bond outstanding that promises to pay $100 million at an interest rate of 7%. The cost of capital for the firmʹs projects is 9%. What is the expected payoff on the bond?                                      a.109 b. 111 c. 115                                                  d. 100

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