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3. 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

3. 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 debt

b. the volatility of debt

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