Question: Problem 2 4 - 1 4 Predicting default probability Upsilon's assets have a current market value of $ 1 0 0 . Its debt has

Problem 24-14 Predicting default probability
Upsilon's assets have a current market value of $100. Its debt has a face value of $60, and it matures in one year. Assume a risk-free rate of interest is 5%. Suppose that the standard deviation of the return on Upsilon's assets is 50%.
Calculate the probability that the company will default.
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
Probability
%
Problem 24-14 Predicting default probability Upsilon's assets have a current market

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