A firm has total assets with a market value of 1500000. it, Ask an Expert

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A firm has total assets with a market value of $1,500,000. It has one issue of 1,000 zero coupon bonds outstanding, each with a face value of $1,000 and a maturity of 3 years. The volatility of the assets is 20%, and the risk-free rate is 5%.

a. What is the market value of the firm's equity?

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