Consider the defaultable bonds of two companies. Firm 1 and V₁ = 200 , F₁ = 150 , T₁ = 1 , ?₁ = 0.25 , and, firm 2 has V₂ = 300 , F₂ = 200 , T₂= 1.5 , ?₂ = 0.20 . Let the riskless rate be 5%. Neither firm pays any dividends. The returns on each firms assets are normally distributed with mean zero. v=assets,spot f=face value,strike =volatility firm defaults at time T

I think this is Black-Scholes model?

a. Estimate the value of the bonds using the options approach .

b. Find the spread of each bond.

c. Calculate the distance to default for each bond

Believe this is the Merton Model?

This is all I got for the question