Venture Capital.

The directors of Lmt plc have been in discussion with 5Ts, a listed venture capital company. As well as contributing equity, 5Ts would seek to spread the risk of their investment by also investing in the form of 4-year 5% secured redeemable bonds and also convertible preference shares. The risk adjusted return on similar bonds has been estimated at 6%.

Corporation tax is currently 30%.

What is the market value of the redeemable bonds?

Select one:

a. 68.15

b. 91.91

c. 96.53

d. 100.00