Albany corp has zero coupon bonds maturing after 15 years, Ask an Expert

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Albany Corp has zero coupon bonds maturing after 15 years. The overall value of the firm is 3 times the face value of the bonds. The company has sigma of .25 and the riskless rate is 8%. Using the option pricing theory, find the market value of a $1000 bond.

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Financial Management, Finance

Category:- Financial Management
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