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$ 5 . The following information on the mortality rate of loans as estimated by an FI Years after Issue Rating A - rated Loans

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$ 5 . The following information on the mortality rate of loans as estimated by an FI Years after Issue Rating A - rated Loans ( SURELY ) 0.59 / $50% ( cumulative ) 0. 59% B - rated loans ( yearly ) 1. 259 % ( cumulative ) 09/ D a . What is the cumulative mortality rate of the A - rated and B- rated loans for year 2 ? b . If the cumulative mortality rate in year 3 is 3 46 percent for the B- rated loan , what is its yearly mortality rate in year 3 7 Show work and briefly discuss your results

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