A firm with assets value at $100,000 issues a 3 year zero-coupon bond with a par value of $110,000. Interest rates are 4% and the volatility of the companyʹs assets are determined to be
)30. If the company pays no dividend, what is the change in the value of the firmʹs debt if the value of the assets increases by $20,000?
A) $ 6,930 decrease
B) $ 7,580 increase
C) $ 8,309 decrease
D) $ 9,029 increase

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The Answer of A firm with assets value at $100,000 issues a 3 year zero-coupon bond with a par value of $110,000. Interest rates are 4% and the volatility of the companyʹs assets are determined to be
)30. If the company pays no dividend, what is the change in the value of the firmʹs debt if the value of the assets increases by $20,000?
A) $ 6,930 decrease
B) $ 7,580 increase
C) $ 8,309 decrease
D) $ 9,029 increase

A Firm with Assets Value at $100,000 Issues a 3