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6. Please pricing default-able bonds with 2 years, face value (F) of $1,000,000, firm value (V) of 1,200,000. The firm values volatility rate is 10%

6. Please pricing default-able bonds with 2 years, face value (F) of $1,000,000, firm value (V) of 1,200,000. The firm values volatility rate is 10% and risk-free rate is 5%. (1) the value of default-able bond; (2) the quasi debt-to-value ratio; (3) the probability of defaulting for the firm of debt issuing.

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