Fan Inc. has a zero-coupon bond outstanding that matures in 5 years with a face value of $15 million. The current value of the company's assets is $20 million, and the standard deviation of maturity of the bond will follow a lognormal distribution. Fan Inc. does not pay cash dividend. The risk-free rate is 5% compounded continuously. Keep four digits after the decimal point for the values of d1 and d2 in the Black-Scholes model. Use the interpolation method to calculate the N(d1) and N(d2) based on the probability table provided. a). Answer the following questions after considering the likelihood of bankruptcy: a.1. What is the current market value of the company's total equity calculated based on the Black-Scholes model? (5 points). a.2. What is the current market value of the company's debt? What is company's continuously compounded cost of debt per year? (5 points) b). Assume that the government provides a guarantee for the bond (i.e., bond holder can sell the bond to the government and receive full payment of the face value, if the firm goes bankrupt), calculate the present value of this government guarantee. ( 5 points) c). Assume that the company undertakes a new project which has a NPV of $5 million and does not borrow additional funds. Answer the following questions after considering the likelihood of bankruptcy ff the company undertakes the project: c.1 What is the current market value of equity? What is the current market value of debt? (5 points) c.2 What is the continuously compounded cost of debt (per year)? How to explain the difference in the cost of debt with and without this new project (5 points)