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1.Calculate the risk of default (1-) of a 1year corporate bond with a yield of 8% and an equivalent T- bond yielding 5% per annum

1.Calculate the risk of default (1-) of a 1year corporate bond with a yield of 8% and an equivalent T- bond yielding 5% per annum

2.Calculate the cumulative, probability of default (Cd) on a two-year corporate bond if the marginal probability of default in year two is the same as the marginal probability of default in year one (as calculated in part one above

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