Question
Assume the existing one-year risk-free rate is 1.2%, the market risk premium is 2.5%, the average loan rate is 3.8%, and the loss given default
Assume the existing one-year risk-free rate is 1.2%, the market risk premium is 2.5%, the average loan rate is 3.8%, and the loss given default is 25%, what is the expected probability of repayment as determined by the market? Show step-by-step formulas please!
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Finance And Sustainability Proceedings From The Finance And Sustainability Conference Wroclaw 2017
Authors: Agnieszka Bem, Karolina Daszy?ska-?ygad?o , Ta?ána Hajdíková, Péter Juhász
1st Edition
3319922270,3319922289
