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Moody's has calculated that for the 1970-2013 period, a Ba rated issuer has cumulative default rates (%) of 1.110, 3.071 and 5.371 in years 1,
Moody's has calculated that for the 1970-2013 period, a Ba rated issuer has cumulative default rates (%) of 1.110, 3.071 and 5.371 in years 1, 2 and 3. Calculate the average hazard rate during the third year for such an issuer.Show how you derived your answer.
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