The table below shows the dollar amounts of outstanding bonds and corresponding default amounts for every year
Question:
What are the annual and cumulative default rates of the above bonds?
Transcribed Image Text:
Years after Issuance 4 Years S 1 5 Years S2 3 Years S93 S2 1 Year 2 Years Loan Type A-rated: Annual default (millions) S95 S91 $88 $100 Outstanding (billions) S3 $89 S4 $85 B-rated: Annual default (millions) $92 $100 $94 Outstanding (billions) C-rated: Annual default (millions) S1 S3 S5 S5 S6 S79 $100 $97 $90 S85 Outstanding (billions)
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Arated Bonds Millions Millions Annual Survival Cumulative Cumulative Year Default Balance Default 1 ...View the full answer
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Related Book For
Financial Institutions Management A Risk Management Approach
ISBN: 978-0071051590
8th edition
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
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