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Bond Terms Par Value: Duration (yrs) $1,000 5 Coupon 4.00% Frequency Semiannual Current rates: 4.75% Bond features: Callable at Par MACd 4.572 Modified Duration

Bond Terms Par Value: Duration (yrs) $1,000 5 Coupon 4.00% Frequency Semiannual Current rates: 4.75% Bond features: Callable at Par MACd 4.572 Modified Duration 4.466 Assuming this bond is the only asset, if the market value of liabilities was $850, what is the economic value of equity?

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