Question 3 A firm is borrowing a three-year zero-coupon loan with a repayment obligation of $415,000. The market value of the firm's assets is estimated at $624,000. Risk-free interest rate is 2%, and the standard deviation of the rate of change in the underlying assets of the borrowing firm is 28%. Using an options framework, determine the following: a) The current market value of the loan. b) The interest rate to be charged on the loan