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Assume That I1 = 11% and I2 = 12%, and That

Question 3

Multiple Choice

Assume that i1 = 11% and i2 = 12%, and that k1 = 14.50% and k2 = 16.50%.What is the expected probability of repayment on the one-year corporate bonds in one year's time (round to two decimals) ?


A) 86.99%
B) 81.47%
C) 86.50%
D) 95.34%

Correct Answer:

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