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Question 6 2 pts The current 1-year spot rate on a treasury bill is 4.25% and the current 1-year spot rate on a BB- rated

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Question 6 2 pts The current 1-year spot rate on a treasury bill is 4.25% and the current 1-year spot rate on a BB- rated bond of equivalent risk to a prospective loan is 11.55%. The bond has a marginal probability of default in year 2 of 8.5%. What is the cumulative probability of default over the 2 years? 17.00% 12.75% O 14.48% 11.55% O 13.08%

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