Estimate the probability of defaulting using Merton's Model.Assume the following: Equity Value: $6 million Debt: $5 million
Fantastic news! We've Found the answer you've been seeking!
Question:
Estimate the probability of defaulting using Merton's Model.Assume the following:
Equity Value: $6 million
Debt: $5 million
Equity Volatility 20%
Interest Rates: 1%
Maturity of debt is 1 year
Expert Answer:
Posted Date:
