A financial analyst estimates that the probability of default on a ten-year AAA rated bond is 0.09, while that on a ten-year BBB rated bond is 0.19. The probability that they will both default is 0.05. (Hint: Let event A be Default on a ten-year AAA rated bond and B be Default on a ten-year BBB rated bond.)

A financial analyst estimates that the probability of default on a "ten-year AAA rated bond is 0.09, while that on a "ten-year BBB rated bond" is 0.19. The probability that they will both default is 0.05. (Hint: Let event A be "Default on a ten-year AAA rated bond" and B be "Default on a ten-year BBB rated bond".) What is the probability of a ten-year AAA rated bond not defaulting? 0.91 0.81 1.00 0.05 0.08 A financial analyst estimates that the probability of default on a "ten-year AAA rated bond is 0.09, while that on a "ten-year BBB rated bond" is 0.19. The probability that they will both default is 0.05. (Hint: Let event A be Default on a ten-year AAA rated bond" and B be "Default on a ten-year BBB rated bond.") Given that the "ten-year AAA rated bond" defaults, what is the probability that the "ten-year BBB rated bond" also defaults? 0.85 0.12 0.56 1.00 0.26 A financial analyst estimates that the probability of default on a ten-year AAA rated bond" is 0.09, while that on a "ten-year BBB rated bond" is 0.19. The probability that they will both default is 0.05. (Hint: Let event A be "Default on a ten-year AAA rated bond" and B be "Default on a ten-year BBB rated bond.") What is the probability that at least one of the bonds defaults? 0.11 0.23 0.04 0.42 0.06