Ifi corporation has two loans outstanding. One loan is to Certain Bank for $400 ,while a senior bond holder is owed $150.Ifi corporation wants to put itself into liquidation and default on it loans. The liquiation value is $160.The management of Ifi corporation has special qualities that would result in a pay-off of $420 with a probability of 0.8 , otherwise zero .For the management to continue , it would have to be paid $10.Carefully outline the options available to Certain Bank .