ASSESSING THE MODIFIED MERTON DISTANCE TO THE DEFAULT MODEL WITH CDS PRICE

This paper provides a way that a Merton-model approach can be modified to develop measures of the probability of default of companies indexed in Standard & Poor’s 500 Index (S&P 500) after a financial crisis. It also examines the accuracy and contribution of the modified Merton Distance to default model based on Merton’s (1974) bond pricing model. Credit Default Swap (CDS) spreads as a plausible indicator of default risk are used in the assessment. The tests are implemented by modeling results’ correlation with data obtained from 2008 to 2017. The sample is based on 112 firms indexed in S&P 500 and is selected according to the availability of outstanding CDS contracts between the test periods.It is found that the results generated by the modified Merton-style approach is consistent with the spreads of credit default swaps. Then it can be concluded that although the modified KMV Merton model fails to generate a sufficient result for the probability of default, it still can be used as a reference for default estimate

A universal approach to coverage probability and throughput analysis for cellular networks

This paper proposes a novel tractable approach for accurately analyzing both the coverage probability and the achievable throughput of cellular networks. Specifically, we derive a new procedure referred to as the equivalent uniformdensity plane-entity (EUDPE)method for evaluating the other-cell interference. Furthermore, we demonstrate that our EUDPE method provides a universal and effective means to carry out the lower bound analysis of both the coverage probability and the average throughput for various base-station distribution models that can be found in practice, including the stochastic Poisson point process (PPP) model, a uniformly and randomly distributed model, and a deterministic grid-based model. The lower bounds of coverage probability and average throughput calculated by our proposed method agree with the simulated coverage probability and average throughput results and those obtained by the existing PPP-based analysis, if not better. Moreover, based on our new definition of cell edge boundary, we show that the cellular topology with randomly distributed base stations (BSs) only tends toward the Voronoi tessellation when the path-loss exponent is sufficiently high, which reveals the limitation of this popular network topology

Finite time decoherence could be suppressed efficiently in photonic crystal

The decoherence of two initially entangled qubits in anisotropic band gap photonic crystal has been studied analytically without Born or Markovian approximation. It is shown that the decoherence dynamics of two qubits in photonic crystal is greatly different from that of two qubits in vacuum or subjected to usual non-Markovian reservoir. The results also show that the finite time decoherence invoked by spontaneous emission could be suppressed efficiently and the entanglement of the Bell state possesses odd parity is more easily preserved in photonic crystal than that of the Bell state possesses even parity under the same condition. A store scheme for entangled particle pair is proposed.Comment: 4 pages, 7 figure

Device-independent point estimation from finite data and its application to device-independent property estimation

The device-independent approach to physics is one where conclusions are drawn directly from the observed correlations between measurement outcomes. In quantum information, this approach allows one to make strong statements about the properties of the underlying systems or devices solely via the observation of Bell-inequality-violating correlations. However, since one can only perform a {\em finite number} of experimental trials, statistical fluctuations necessarily accompany any estimation of these correlations. Consequently, an important gap remains between the many theoretical tools developed for the asymptotic scenario and the experimentally obtained raw data. In particular, a physical and concurrently practical way to estimate the underlying quantum distribution has so far remained elusive. Here, we show that the natural analogs of the maximum-likelihood estimation technique and the least-square-error estimation technique in the device-independent context result in point estimates of the true distribution that are physical, unique, computationally tractable and consistent. They thus serve as sound algorithmic tools allowing one to bridge the aforementioned gap. As an application, we demonstrate how such estimates of the underlying quantum distribution can be used to provide, in certain cases, trustworthy estimates of the amount of entanglement present in the measured system. In stark contrast to existing approaches to device-independent parameter estimations, our estimation does not require the prior knowledge of {\em any} Bell inequality tailored for the specific property and the specific distribution of interest.Comment: Essentially published version, but with the typo in Eq. (E5) correcte