Acar, Sarp Kaya (contributor) - 2007
also referred to as the flrm value approach. The default event is modeled as the
flrst hitting time of the underlying flrm … exogenous bankruptcy level refers to the case when the bankruptcy event is due to
some protective covenant. For instance, the … specifled
threshold process (which can be deterministic or stochastic). Merton [Mer74] considered
a case where the default event …