A single 5-year zero-coupon debt issue with a maturity


A single 5-year zero-coupon debt issue with a maturity value of $120 and the expected return on assets of 12%. Calculate the following:

a. the expected return on equity

b. the volatility of equity

Please answer a AND b and show the calculations

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Financial Management: A single 5-year zero-coupon debt issue with a maturity
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