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please answer with excel 300 us sse LLC cree -0.. 28. A firm issues a two-year bond with face value $800M at time 0. The
please answer with excel
300 us sse LLC cree -0.. 28. A firm issues a two-year bond with face value $800M at time 0. The bond value does not change until the maturity date. The total assets value at time 0 is $1,000M and the assets value volatility is 0.4. Interest rate is 0.1. Using Merton model to estimate: 1) The distance to default of this firm at the maturity date (3 points) Answer: 2) The probability of default at the maturity date (1 points) Answer: I 3) What is the 1-Yr Expected Default Frequency (EDF) of this firm in KMV model? (1 points)
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