Multiple Choice
The average default rate in the economy is 1.5% of the face value of outstanding debt defaults per year. What is the average time between defaults if there are 1000 firms alive on average?
A) 20 days
B) 24 days
C) 38 days
D) 41 days
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q10: The average default rate in the economy
Q11: Suppose we have a zero coupon bond
Q12: Suppose the default intensity of a firm
Q13: A zero coupon bond with a maturity
Q14: If the hazard rate is
Q16: Consider a one-year zero-coupon defaultable bond.
Q17: The hazard rate for a firm
Q18: Suppose the default probability of a firm,
Q19: Suppose we have a zero-coupon bond that
Q20: Suppose we have a zero-coupon bond that