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Please answer these questions below Survival Probability and Absolute Default Probability Recall-the CDP is 3% Find the survival probability and absolute default probability Remember: PV
Please answer these questions below
Survival Probability and Absolute Default Probability Recall-the CDP is 3% Find the survival probability and absolute default probability Remember: PV of expected premiums = Finding PV of Expected Premiums Recovery rate =30% (CDS buyer gets 70% of face value in a cash payout). We assume that default occurs at year end. Survival Probability and Absolute Default Probability Recall-the CDP is 3% Find the survival probability and absolute default probability Remember: PV of expected premiums = Finding PV of Expected Premiums Recovery rate =30% (CDS buyer gets 70% of face value in a cash payout). We assume that default occurs at year endStep by Step Solution
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