A firm is borrowing a three$-$year zero$-$coupon business loan from your bank with a

repayment obligation of $$4,658$ million. You estimate that the market value of the firm$$s

total assets is $$6,250$ million. Discount rate used by the bank is $6\mathrm{.}5\%,$ and the standard

deviation of the rate of change in the underlying assets of the borrowing firm is $27\%.$

Using the options framework, determine the following:

a$)$ The current market value of the loan.

b$)$ The interest rate to be charged on the loan.

Note: Keep $6$ decimals during all your calculations, but round your final answer to

last dollar for debt value and $4$ decimals for interest rate on the loan.