Question: Problem 12 * >> Intro Kane Inc. has a zero coupon bond outstanding with a face value of $210 million that matures in 10 years.

Problem 12 * >> Intro Kane Inc. has a zero coupon bond outstanding with a face value of $210 million that matures in 10 years. The market value of its assets is $261 million and the annual standard deviation of the return on the fir's assets is 42%. The risk-free rate is 5% (continuously compounded). Part 1 Attempt 2/8 for 10 pts. What is the value of the term d; in the Black-Scholes formula? 2+ decimals I Previous answers: 9.91 Submit Part 2 Attempt 1/8 for 10 pts. What is the value of N(d.)? Use Excel's NORM.S. DIST(d, true) function 2+ decimals Submit Attempt 2/8 for 10 pts. Part 3 What is the market value of the firm's equity (in $ million)? 0+ decirdals Previous answers: 51.03 Submit

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