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using any data sources at your disposal (e.g. COMPUSTAT, CRSP, EDGAR, Yahoo Finance, etc.). To be able to answer some of the questions you may

using any data sources at your disposal (e.g. COMPUSTAT, CRSP, EDGAR, Yahoo Finance, etc.). To be able to answer some of the questions you may also need to make informed assumptions (e.g. about the market risk premium);

1.Using Mertons model estimate the current one-year default probability for Ford Motor Company (F).

Assuming default probabilities are constant through time, what is the probability that Ford will default sometime in the next five years?

Estimate the current one-year default probability for Ford Motor Company (F) using the CreditGrades model instead.

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