Bryce Body Works has a zero coupon bond outstanding with a face value of $ 1 1

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Question:

Bryce Body Works has a zero coupon bond outstanding with a face value of $

11

million that matures in

5

years. The market value of its assets is $

12

million and the annual standard deviation of the return on the firm's assets is

20 % .

The risk

-

free rate is

6 % (

continuously compounded

) .

What is the market value of the firm's equity

(

in $ million

) ?

Posted Date: May 18, 2024 08:05 PM

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Bryce Body Works has a zero coupon bond outstanding with a face value of $ 1 1

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