The value of a company's equity is $4 million and the volatility of its equity is 60%. The debt that will have to be repaid in 2 years is $15 million. The risk-free interest rate is 6% per annum. Use Merton's model to estimate: a. The probability of default b. The expected loss from default c. The recovery rate in the event of default Hint: To solve two nonlinear equations of the form F(x,y)=0 and G(x,y)=0, the Solver routine in Excel can be asked to find the values of x and y that minimize [F(x,y)]2+[G(x,y)]2