Given the following: - Stock equals 100 - Stock volatility of 40% - Debt maturity of 5 years - Debt Face value of 150 - Risk-free rate of 3% Use Merton's model to find the asset value and asset volatility? What is the risk-neutral probability of default over the debt's maturity and the annualized default probability? What is the market spread for the debt? What is the implied Recovery Rate? Given the following: - Stock equals 100 - Stock volatility of 40% - Debt maturity of 5 years - Debt Face value of 150 - Risk-free rate of 3% Use Merton's model to find the asset value and asset volatility? What is the risk-neutral probability of default over the debt's maturity and the annualized default probability? What is the market spread for the debt? What is the implied Recovery Rate