To clarify previous question, this is an extension of MM model: A firm has total

Question

To clarify previous question, this is an extension of MM model: A firm has total value (debt plus equity) of $500 million and $200 million face value of 1-year zero coupon debt. The volatility (?) of the firm's total value is 0.60, and the risk-free rate is 5%. Assume that N(d1) = 0.9720 and N(d2) = 0.9050. What is the value (in millions) of the firm's equity if it is viewed as an option?
How do I calculate this : V = 500(0.9720) - 200 exp (-0.05)*(1)*(0.9050)
I am lost with the second half of the calculation: " - 200exp (-0.05)*(1)*(0.9050)

Explanation / Answer

V= PN(d1) – Xe-rf(T)N(d2) = 5.0(0.9720) – 2.0e-0.05(1)(0.9050) = 3.138 million

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