9. Assume that a firm has a current value of 200, annual volatility of 50%. Two securities outstanding zero-coupon bonds and common stock. The bonds mature in 5 years and have a face value of 100. The stock pays no dividends, and the risk-free rate is 5%

(a) What is the market value of the corporate bond?

(b) What is the cost of buying default protection on a quarterly basis?

(c) What is the bonds credit spread?

Note that N(d1) = 0.9196N(d2) = 0.6120