Saskatchewan Wheat Fields Inc.is planning to issue $100 million of commercial paper with 30 days to maturity.The quoted rate for the issue is 8%.There is a 3% probability that the firm will default on the issue and the investor will receive zero.If the investor's required rate of return is 5%, then the value of the issue is:
A)$100 million
B)$99.77 million
C)$99.59 million
D)$97.24 million

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The Answer of Saskatchewan Wheat Fields Inc.is planning to issue $100 million of commercial paper with 30 days to maturity.The quoted rate for the issue is 8%.There is a 3% probability that the firm will default on the issue and the investor will receive zero.If the investor's required rate of return is 5%, then the value of the issue is:
A)$100 million
B)$99.77 million
C)$99.59 million
D)$97.24 million