Asset value (million) Probability $7 5% $9 20% $11 50% $13 20% $15 5% Assume that the debt value of the bank does not change.3 What happens to the bank when asset value changes? Well, recall from your accounting class: if the banks asset value goes up (down) by one dollar, its equity value will also go up (down) by one dollar. Also, the bank goes into bankruptcy if its asset value is equal to or lower than its debt value, which does not change. Question: what is the probability that this bank will go bankrupt if it has a leverage of 10 to 1 (L = 10)? What if 5 to 1 (L = 5)?