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Assume that you are looking at a 3-year corporate bond that has a default risk in any given year of 3.80%. Determine the probability of
Assume that you are looking at a 3-year corporate bond that has a default risk in any given year of 3.80%. Determine the probability of this bond NOT defaulting over the 3 years. That is, the bond makes it all the way to maturity and makes all payments on time.
Probability of survival through three years = _______ %. Answer to two decimal places.
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