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Assume that a firm has assets of $100, with = 40%, = 15%, and = 0. The risk-free rate is 8%. The firm has a

Assume that a firm has assets of $100, with = 40%, = 15%, and = 0. The risk-free rate is 8%. The firm has a single outstanding debt issue with a promised maturity payment of $120 in 5 years. What is the probability of bankruptcy? What is the credit spread

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