The US Government Agrees to Guarantee a Bond Issue Planned by by Demurrage

The U.S. government agrees to guarantee a bond issue planned by Demurrage Associates (DA) . The value of this guarantee
I.equals the value of the guaranteed loan minus the value of the loan without a guarantee;
II.is a subsidy to DA's equity investors;
III.is a windfall gain to the buyers of the bonds;
IV.equals the value of a put option on the firm's assets with an exercise price equal to the bond's promised payments

A) II only
B) I, II, and IV
C) I only
D) III only