Swenson Software has a pure discount debt issue with a face value of $100.

The issue is due in one year. At that time, the assets of the firm will be worth either $55 or $160, depending on the sales success of Swenson’s latest product. The assets of the firm are currently worth $110. If the riskfree rate is 10 per cent, what is the value of the equity in Swenson? The value of the debt? The interest rate on the debt?