Question: (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Price a. Value of risk-free bond Price of put

(Do not round intermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.) b. Price a. Value of risk-free bond Price of(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

b. Price a. Value of risk-free bond Price of put option C-1. Value of firm's debt c-2. Return on debt d-1. Value of firm's debt d-2. Return on debt e-1. Bondholders' gain/loss e-2. Stockholders' gain/loss Colosseum Corp. has a zero coupon bond that matures in five years with a face value of $91,000. The current value of the company's assets is $87,000, and the standard deviation of its return on assets is 38 percent per year. The risk-free rate is 6 percent per year, compounded continuously. b. Price a. Value of risk-free bond Price of put option C-1. Value of firm's debt c-2. Return on debt d-1. Value of firm's debt d-2. Return on debt e-1. Bondholders' gain/loss e-2. Stockholders' gain/loss Colosseum Corp. has a zero coupon bond that matures in five years with a face value of $91,000. The current value of the company's assets is $87,000, and the standard deviation of its return on assets is 38 percent per year. The risk-free rate is 6 percent per year, compounded continuously

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