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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 496 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 496 and 8%, tespectively, and that the joint probability of default of the two bonds is 0.25%, what is the default correlation between the two bonds?

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