We take into consideration a company, whose equity is $11$ million euros.

The company's debt is equal to $20$ million euros and it must be paid in one year.

The risk$-$free rate on the market is $0\mathrm{.}5\%$ per annum.

The observed instantaneous volatility of equity is $0\mathrm{.}7.$

What is the probability of default $($PD$,$ in percentage but without the $\%$ symbol; round off to the $2$nd decimal, e$.$g$.2\mathrm{.}33)$ of the company according

to Merton's model?

What is the probability of default $($PD$,$ in $\%$ but without the $\%$ symbol; round off to the $2$nd decimal, e$.$g$.2\mathrm{.}33)$ if the company's debt increases to

$30$ million euros?