Firm RD $($Risky Debt$)$ has total value of debt plus equity of $$5$ million. The risk free rate is $3$ percent. It has $$2$ million face value of $3-$year $0-$coupon debt. Assume the appropriate values of the Black$-$Scholes parameters are $N(d1)=0\mathrm{.}5678$ and $N(d2)=0\mathrm{.}3756.$

What is the value of the equity for RD $($in $ millions$)?$

$7\mathrm{.}92$

$3\mathrm{.}94$

$9\mathrm{.}45$

$1\mathrm{.}73$

$2\mathrm{.}15$

Question $7(1$ point$)$

What is the value of RD$\text{'}$s debt $($in $ millions$)?$

$0\mathrm{.}84$

$4\mathrm{.}98$

$3\mathrm{.}27$

$2\mathrm{.}85$