If you could fully explain the steps to solving it.

11. Tina has $3,000 that she wishes to invest for one year She has narrowed her choices Buy bonds of Risky Mining Ltd. These pay 14.7% interest unless Risky goes bankrupt Tina assesses her prior probability of Risky Mining Lid going bankrupt as 0.40. The Savings bonds will pay off regardless of whether Risky goes bankrupt or not b. Can the risk of a por R to one of the following two actions: b in which case Tina will lose her principal and interest Buy savings bonds, paying 6.2% interest. utility for money is given by the square foot of the amount of her gross payott, The s, if she buys the savings bonds her gross payoff is 53,186, etc. Tina is a national de sion maker Required a. Based on her prior probabilities, which action should Tina take Show your calculations b. Before making a final decision, Tina decides she needs more information. She obtain Risky Mining's current financial statements and examines its debt-equity ratio. This rate can be either "HI" or "LO. Upon calculating the ratio, Tina observes that it is too the basis of her prior experience in bond investments, Tina knows the following cons tional probabilities G. Debt-to-Equity Ratio Future State LO HI NB (Not Bankrupt) 0.50 0.50 B Bankrupt) 0.05 0.95 Which action should na now take? Show your calculations taken to two decimal pacs 13. Ste to AE pro C. A new accounting standard requires that Risky Mining Ltd.'s pension liabilities must now be measured in the financial statements at their expected discounted present values lie., value in use), instead of the previous pay-as-you-go accounting under which pen- sion expense was based on amounts paid out for pensions during the period with no balance sheet liability recorded. Evaluate (in words only) the likely impact of the new standard on the main diagonal probabilities of the information system in part b