Transcribed Image Text
Consider a corporation with a marketvalue of $100 million. The form has a zero- coupon bond with anaggregate Face value of $100 million due in one year. Thevolatility of the rate of return on the firm is 30% per year andthe risk-free rate is 5% per year. What is the aggregate marketvalue of this bond?A. 79.17 millionB. 69.25 millionC. 98.01 millionD. 85.77 millionE. None of the above
Other questions asked by students
Basic Math
Q
use the standard normal table to find the z-score that corresponds to the cumulative area 0.0594....
Statistics
Accounting
Accounting
Accounting
Accounting