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The Current Market Value of the Assets of Bigelow

question 19

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The current market value of the assets of Bigelow.is €86 million,with a standard deviation of 15% per year.The firm has zero-coupon bonds outstanding with a total face value of €45 million.These bonds mature in 2 years.The risk-free rate is 4% per year compounded continuously.What is the value of d1?


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