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Suppose a firm with a value of $100 million .8 has a bond outstanding with a face value of $60 million that matures in 8

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Suppose a firm with a value of $100 million .8 has a bond outstanding with a face value of $60 million that matures in 8 years. the current interest rate is 9% and the volatility of the firm is 20% what is the probability that the firm will default on its debt if the expected return on the firm , , is 10% ?what is the probability of * ?default () (5 ) 3.10% 5.10% 2.10% 4.10% Suppose a firm with a value of $100 million .8 has a bond outstanding with a face value of $60 million that matures in 8 years. the current interest rate is 9% and the volatility of the firm is 20% what is the probability that the firm will default on its debt if the expected return on the firm , , is 10% ?what is the probability of * ?default () (5 ) 3.10% 5.10% 2.10% 4.10%

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