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1. Use the default rates on p.8 to answer the following questions. (a) What is the probability (in %) that an A-rated bond will survive

1. Use the default rates on p.8 to answer the following questions.

(a) What is the probability (in %) that an A-rated bond will survive for four years and then default within three years?

(b) For an Aa-rated bond that has survived for ten years, what is the probability (in %) that it will survive for another ten years?

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