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Using the Merton model, calculate (d1,.6 d1-o*VT-t) and the value of the firm's equity at t given that the current value of the firm is
Using the Merton model, calculate (d1,.6 d1-o*VT-t) and the value of the firm's equity at t given that the current value of the firm is $55 million, the principal amount due in 5 years on the zero- coupon bond is $35 million, the annual interest rate r, is 9% and the volatility on the firm , o , is 20%
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