Okay so the question is on page 165 as a solved example of Schweser 2014 notes also there is a question in the concept checkers number 8 on page 171. I need to know how to calculate the PV of the risky debt!!
There’s a bunch of corrected numbers in the errata for the example on p 165.
hopefully that will help your confusion
That question is so screwed up - I wouldn’t even look at it. I suggest finding another problem to practice with.