Saskatchewan Wheat Fields Inc

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