The marginal default probabilities for an A-.8 rated issue are, respectively, for years 1, 2, and 3: 0.300%, 0.450%, and 0.550%. assume that defaults, if they take place, happen only at the end of the year. Calculate the cumulative default rate at the end of each of the next three years. (final answer)
The marginal default probabilities for an A-.8 rated issue are, respect…
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