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8. Consider an A-rated bond and a BBB-rated bond. Assume that the one-year probability of default for the A-rated and BBB-rated bonds are % and

8. Consider an A-rated bond and a BBB-rated bond. Assume that the one-year probability of default for the A-rated and BBB-rated bonds are % and 8%, respectively, and that the joint probability of default of the two bonds is 0.25%. what is the default correlation between the two bonds?(final answer) (3 Points )

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