Question
A company's equity is $3 million and the volatility of the equity is 80%.The risk-free rate is5%,the debt is$10million and time to debt maturity is1year.What
A company's equity is $3 million and the volatility of the equity is 80%.The risk-free rate is5%,the debt is$10million and time to debt maturity is1year.What is the distance to default?What is the probability of default?
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Risk Management and Financial Institutions
Authors: Hull John
4th edition
1118955943, 978-1118955949
