Abigail plc would like to borrow 1 million for one year. There is a 15 percent chance that the firm will be bankrupt at the end of the year. In the event that the firm is bankrupt, its assets can be sold for 0.5 million. However, the legal costs of seizing Abigails assets will cost the bank 120,000. How much will a bank charge for the loan if it prices loans to companies like Abigail to earn, on average, 10 percent?