I need someone to double check this exercises I solved;

financial data for two companies:

A B

Total assets $1,587.1 $1,600.7

EBITDA -53 77

Net income + interest -73 31

Total liabilities 744.0 1,467.1

Calculate the probability of default for the two companies.

Probability of default company A=

Total liabilities/ total assets= 744. / 1587.1 + -73 + -53 = 744./1461.1=52%

Probability of default company B=

otal liabilities/ total assets= 1467.1 / 1600.7 + 31 + 773 = 744./1708.7=86%

Should I use the stated total assets 1587.1(company A) and 1600.7(company B) without the changes I did on the calculations above or do I need to use -6.445 -1.192 (ROA) +2.307 (liabilities/assets) - .346 (EBITDA/LIABILITIES)?

Amount issued:$400 million

Offered: Issued at a price of 101.50% plus accrued interest (proceeds tocompany 101.300%) through First Boston Corporation.

Interest: 9.25% per annum, payable February 15 and August 15.

1. Suppose the debenture was issued on September 1, 1992, at 101.50%. How much would you have to pay to buy one bond delivered on September 15? Don't forget to include accrued interest.
2. hat is the amount of the first interest payment

a. X = 1000 x 101.50% + (1000 x 9.25% x 1/12)

X= 1000 x 1.015 + (1000 x 0.0925 x 0.0833)

X= 1015 + 7.70525=1022.0

b. X = Amount Issued of Bond x Interest rate x 1/2

X = $400 x 9.25% x

X= $400 x 0.0925 x 0.5

Amount of the first interest payment = $ 18.5 million