A firm with assets value at $350,000 issues a 5 year zero-coupon bond with a par value of $400,000. Interest rates are 5% and the volatility of the company's assets are determined to be .29
If the company pays no dividend, what is the delta of the issued debt?
A)
.307
B)
.324
C)
.365
D)
.396
Answer:
A
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