3. A project costs $100 and promises the following cash flows: $50 in year 1 and $90 in year 2. The appropriate discount rate is 20% per annum. There is 80% chance that you will get the promised cash flows, 10% chance that you will get a half of the promised cash flows, and 10% chance that you will get nothing for each period. Should you invest in this project (5 points)? 4. A 1-year corporate bond will pay the following: 1. The promised amount of $10,000, with probability 70%. 2. only $9,000 with probability 29%; and 3. nothing with probability 1% 1) If the risk-free market interest rate is 5%, what minimum promised interest rate must the lender demand just to break even (5 points)? 2) Then, what would be the default premium on this bond under a risk-neutral world (5 points)? 3) If the bond, however, has a promised rate of return of 11%, what is the risk premium on this bond under a risk-averse world (5 points)