Goldminers Inc. mines and refines ore and sells pure gold in the global market. To raise funds, it sells a derivative security whose payoff is as follows:

• Part of the security is a zero- coupon bond (which is sold at a discount and makes no interest payments) that pays a principal of $1,000 at maturity T.

• Goldminers also pays an additional amount that is indexed to gold’s price (per ounce) at maturity S(T):

0 if S(T) ≤ $1,350

30[S(T) – 1,350] if $1,350 < S(T) ≤ $1,400

1,500 if $1,400 < S(T)

Analyze this derivative as a combination of bond and put options.