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Zero-coupon debt issue with a maturity value
Course:- Financial Management
Reference No.:- EM131303432





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Assume this scenario: A single 5-year zero-coupon debt issue with a maturity value of $120 and the expected return on assets of 12%. Calculate the following: a. the expected return on equity b. the volatility of equity Assume this scenario: c. the expected return on debt d. the volatility of debt




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