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Please show all work written out! Sculls and Shells Corporation (S&S Corp.) is about to launch a new rowing boat. Depending on the success of

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Please show all work written out!

Sculls and Shells Corporation (S&S Corp.) is about to launch a new rowing boat. Depending on the success of the new product, S&S Corp. will have a value next year of $100M, $85M, or $50M. These outcomes are equally likely, and this risk is diversifiable. Suppose the risk- free rate is 5% and that, in the event of a default, 25% of the value of S&S assets will be lost to bankruptcy costs. If S&S's only obligation is a zero-coupon bond due next year, with a $90M face value next year, what is the market value of the bond today

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