Answer and Explanation:
The computation is shown below:
Current promised return on debt is
= $53,400 ÷ $45,800 - 1
= 16.60%
And, the expected return on debt is
The expected amount would be
= $53,400 × 30% + $44,000 × 70%
= $16,020 + $30,800
= $46,820
Now the expected return on debt is
= $46,820 ÷ $45,800 - 1
= 2.23%