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Suppose a firm has a single zero-coupon bond issue outstanding with face value of $90,000 due in a vear. The current market value of the

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Suppose a firm has a single zero-coupon bond issue outstanding with face value of $90,000 due in a vear. The current market value of the firm's asset is $100000, and the risk-free rate is 10%. The firm is taking on a risky project, which will either increase the firm value in a year to $120,000 or decrease to $80,000. What is the yield on the debt (choose the closest value)? 20.45 79.55 13.14\% 1096

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