Question: Given the following parameter values, use the Merton model to find the spread on the firm's bond. Maturity=6 years, Debt face value= 485; Volatility of

Given the following parameter values, use the Merton model to find

Given the following parameter values, use the Merton model to find the spread on the firm's bond. Maturity=6 years, Debt face value= 485; Volatility of the assets= 28%, Firm value = 600; Riskfree rate = 5% Report your answer to the nearest basis point

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