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In: Finance
Bryce Body Works has a zero-coupon bond outstanding with a face value of $12 million that...
Bryce Body Works has a zero-coupon bond outstanding with a face value of $12 million that matures in 5 years. The market value of its assets is $14 million and the annual standard deviation of the return on the firm's assets is 46%. The risk-free rate is 5% (continuously compounded).
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What is the market value of the firm's equity (in $ million)?
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What is the value of the risky bond?
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What is the return on the risky bond?
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jeff jeffy answered 2 years agoRelated Solutions
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