The current market value of the assets of Smethwell, Inc. is $87 million, with a standard deviation of 12 percent per year. The firm has zero-coupon bonds outstanding with a total face value of $40 million. These bonds mature in 3 years. The risk-free rate is 4 percent per year compounded continuously. What is the value of d1?

4.72

4.48

4.42

4.64

4.80