4- ArMusic is a custom manufacturer of bandoneons located in Buenos Aires (Argentina). ArMusie's current value of operations, which is also its value of debt plus equity, is estimated to be $5 million. ArMusic has $2 million face value zero-coupon debt that is due in 2 years. The risk free rate is 6% and the volatility of companies similar to ArMusic is 50%. ArMusic's owners view their equity investment as an option and would like to know the value of their investment. a) Using Black-Scholes Option Pricing Model, how much is ArMusic's equity worth? c) How m uch the equity value and the yield on the debt change if ArMfusic's management were able to use risk management techniques to reduce its volatility to 30% percent? Explain this