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QUESTION 9 (5) Briefly explain the five (5) primary methods or models that are commonly used, by banks, to estimate the probability of default (PD)

QUESTION 9

(5) Briefly explain the five (5) primary methods or models that are commonly used, by banks, to estimate the probability of default (PD) of a borrower. Your answer should also include the key element(s) (regarding their mechanics) of each of these methods.

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