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Company ABC has 4 - year zero - coupon bonds outstanding, which will pay $ 1 , 0 0 0 at maturity. The assets are

Company ABC has 4-year zero-coupon bonds outstanding, which will pay $1,000 at maturity. The assets are valued at $900,\sigma =0.25, r =0.045, and the company does not pay a dividend. Using a Merton model, what is the yield on debt (continuously compounded)?

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