Question 26 2.5 pts The current 1-year spot rate on a T-strip is 6% and...
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Question 26 2.5 pts The current 1-year spot rate on a T-strip is 6% and the current 1-year spot rate on a BBB-rated marketable loan is 9.65%. If the annual marginal probability of repayment in year 2 is 93.45% and the annual marginal probability of default in year 3 is 7.54%. What is the cumulative probability of default over the 3 years? O 16.86% O 18.97% O 19.25% O 13.60% O 16.47%
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