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

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Reference no: EM13653371

Assume this scenario: 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   

Reference no: EM13653371

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