Equity as a call option

a company currently valued at $1,200,000 has a zero-coupon bond outstanding with a face value of $1,000,000 that is due in 1 year. The risk-free rate is 4%.

For part 1 to 3, assume the value of the firm's assets in 1 year will be worth either $1,000,000 or $1,400,000.

1. what is the current value of the firm's equity?
2. what is the current value of the firm's debe?
3. what is the interest rate on the debt?

For part 4 to 6, assume the value of the firm's assets in 1 year will be worth either $800,000 or $1,400,000.

4. what is the current value of the firm's equity?

5.what is the current value of the firm's debt?

6.what is the interest rate on the debt?

7. assume the company could arrange its existing assets so the value in 1 year will be worth either $500,000 or $1,700,000. Will shareholders prefer this arrangement?