Firm F has 4 categories of bonds, all with face value $1,000 and one-year maturity: - 1,000 zero-coupon senior secured bonds (A), - 500 zero-coupon junior secured bonds (B), - unsecured debt (C) with face value $300,000 (same seniority as bonds B), - 200 zero-coupon subordinated bonds (D). 1. Scenario 1: Bonds A and B are secured on two buildings with liquidation value $1.3 million. The rest of F's assets have a $400,000 liquidation alue. If F is liquidated at the end of the year, how much do debtholders of Tranche C recover? 2. Scenario 2: Bonds A and B are secured on two buildings with liquidation value $600,000. The rest of F's assets have a $1,000,000 liquidation value. If F is liquidated at the end of the year, how much do debtholders of Tranche C recover? 3. F only defaults in recession, which has a probability 0.2. In case of default, F is liquidated according to scenario 1. The return of the market portfolio in recession is -10%. Outside of recessions, that is, in normal times (probability 0.8), the market portfolio has a return of 13%. Suppose that the market value of one B-bond is $950, compute the beta of one bond B. Firm F has 4 categories of bonds, all with face value $1,000 and one-year maturity: - 1,000 zero-coupon senior secured bonds (A), - 500 zero-coupon junior secured bonds (B), - unsecured debt (C) with face value $300,000 (same seniority as bonds B), - 200 zero-coupon subordinated bonds (D). 1. Scenario 1: Bonds A and B are secured on two buildings with liquidation value $1.3 million. The rest of F's assets have a $400,000 liquidation alue. If F is liquidated at the end of the year, how much do debtholders of Tranche C recover? 2. Scenario 2: Bonds A and B are secured on two buildings with liquidation value $600,000. The rest of F's assets have a $1,000,000 liquidation value. If F is liquidated at the end of the year, how much do debtholders of Tranche C recover? 3. F only defaults in recession, which has a probability 0.2. In case of default, F is liquidated according to scenario 1. The return of the market portfolio in recession is -10%. Outside of recessions, that is, in normal times (probability 0.8), the market portfolio has a return of 13%. Suppose that the market value of one B-bond is $950, compute the beta of one bond B