Landmines a pure gold producer needs money. They want to raise money by selling a bond. Their investment banker, Bonkman Sacks, designs the bond to sell. It will pay at maturity, a year later, $1,000 mil an additional amount. This additional amount (figures are all in $ mil) is tied to golds price S(T) and will be:

0 if S(T)<$950

10[S(T)-950] if S(T) $950

If the risk-free rate is 10%, the current price of gold is $920 and the volatility of gold price is 20% per year can you find what is the amount of money that they can raise?

Please show the work and formulas in excel and explain.

Thank you in advance for your help!