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5. Suppose a firm with a value of $60 million has a bond outstanding with a face value of $50 million that matures in 2

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5. Suppose a firm with a value of $60 million has a bond outstanding with a face value of $50 million that matures in 2 years, the current interest rate is 6% and the volatility of the firm is 25% what is the probability that the firm will default on its debt if the expected return on the firm, H, is 30% ?what is the expected loss given default? * (5 Points) 1121600 121600 21600 151600 5. Suppose a firm with a value of $60 million has a bond outstanding with a face value of $50 million that matures in 2 years, the current interest rate is 6% and the volatility of the firm is 25% what is the probability that the firm will default on its debt if the expected return on the firm, H, is 30% ?what is the expected loss given default? * (5 Points) 1121600 121600 21600 151600

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