Need help solving the Merton Model for credit risk

  • Thread starter Thread starter J-C
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J-C

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1/23/12
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Hi,

I am currently trying to solve for V and sigmaV in the Merton Model. I have tried with Matlab and Excel Solver. In Excel, it gives me a "divide by zero" error and cannot find my mistake. Attached is an Excel file with the necessary variables to solve. This data is for one firm and one time period.
Once this error is solved, I will be able to run a VBA code to find solutions for many firms and many time periods (reasearch project).

Thanks,

J-C
 

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