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2. Suppose Bank Z lends EUR 4 million to X and EUR 5 million to Y. over the next year, the PD for X is

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2. Suppose Bank Z lends EUR 4 million to X and EUR 5 million to Y. over the next year, the PD for X is 0.2 and for Y is 0.3. the PD of joint default is 0.1. the loss given default is 40% for X and 60% for Y. what is the expected loss of default in one year for the bank?(final answer) *

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