AMC has assets worth $10.3 billion and its annual asset volatility is 35%. AMC has issued a zero-coupon bond with a face value of $9.5 billion and 5-year maturity. The risk-free rate is 2% per year. For the pricing, use the binomial model with annual periods.

(a) What is the binomial tree for asset value? (b) What is the current value of equity? (c) What is the current value of debt? (d) What is the leverage ratio? (e) What is the yield of the bond?