Rackin Pinion Corporation's Assets Are Currently Worth $1,260

Rackin Pinion Corporation's assets are currently worth $1,260.In one year,they will be worth either $1,200 of $1,610.The risk-free interest rate is 5 percent.Suppose Rackin Pinion has an outstanding debt issue with a face value of $1,200.What is the current value of the firm's debt?

A) $60.00
B) $114.14
C) $1,142.86
D) $1,263.19
E) $1,504.20