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Assume the interest rate in the market for one-year zero-coupon government bonds is 3.6% and the rate for one-year zero-coupon grade BBB bonds is 10.1%.

Assume the interest rate in the market for one-year zero-coupon government bonds is 3.6% and the rate for one-year zero-coupon grade BBB bonds is 10.1%. The implied probability of repayment on the cor...

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