Multiple Choice
Cumulative default probability refers to
A) probability that a borrower will default over a specified multi-year period.
B) expected maximum change in the loan rate due to a change in the risk factor on the loan.
C) historic default rate experience of a bond or loan.
D) expected maximum change in the loan rate due to a change in the credit premium.
E) probability that a borrower will default in any given year.
Correct Answer:
Verified
Correct Answer:
Verified
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