Credit risk measures using credit spreads. Consider Spectacular Corporation, which has promised to pay investors $10,000, 7.425 years from now. The risk-free zero-coupon yield is 1.100%. The Spectacular Corporation credit spread for payment 7.425 years from now is 0.725%. What is the present value of the expected loss implied by the credit spread? (Select the answer that most closely matches the results of your calculations.)

A.

$499.102

B.

$455.963

C.

$482.977

Credit scoring is not:

	A.	a ranking of borrowers default risk.
	B.	an estimate of the borrowers default probability.
	C.	used for small owner-operated businesses and individuals.