Can you price a corporate bond issued by the reference entity of the following features: face value of 100, xed coupon rate of 7% paid quarterly, maturity of 6 years? Let us assume the default recovery of the bond is 40% of its face value. Show you work and result in a separate worksheet. It takes a bit research and imagination to nish your assignment. A bit hint: the price of the bond is the present values of its all expected future cash ows: coupons and principal in case of non-default and recovery payment in default. What you need to do is simply attach the appropriate probabilities to each of them. A question: which type of model, structural or reduced form, should be more accurate in terms of pricing credit securities?