Company has 4 debt issues with following characteristics
	Face value	Coupon	duration
	200M	14%	14.1y
	120M	12%	10.2y
	200M	11%	9.5y
	700M	12.5%	4y

Lets assume 65% equity and 35% debt based on market values and number shares.

The firm is rated B. Although firms bonds are not traded similar B-rated bonds have annualized standard deviation of 11%.

The correlation between B-rated bonds and this company's stock returns is 0.50.

The firm pays no dividends.

The current T-Bond rate is 2%.

Assume firm is 30% debt and 70% equity (based on market value) The volatility of equity is 0.19.

---------------------------------------------------------------------------------------

1. What is the duration of the debt?

2. What is the volatility of the firm?

3. What is the value of the equity?