= firm has assets of $200,000 and total debts of $175,000. With an option pricing model, the
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= firm has assets of $200,000 and total debts of $175,000. With an option pricing model, the implied volatility of the firm’s assets is estimated at $10,730. Under the KMV method, what is the expected default frequency (assuming a normal distribution for assets)?
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Related Book For 
Financial Institutions Management A Risk Management Approach
ISBN: 9780077211332
6th Edition
Authors: Anthony Saunders, Marcia Cornett
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