Ed's Sheds Has a $1,200 Pure Discount Bond That Comes

Ed's Sheds has a $1,200 pure discount bond that comes due in one year.The risk-free rate of return is 4 percent.The firm's assets are expected to be worth either $900 or $1,400 in one year.Currently,these assets are worth $1,100.What is the current value of the firm's debt?

A) $87.48
B) $93.85
C) $1,012.52
D) $1,153.85
E) $1,006.15