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Suppose a bond's observed credit spread of 160 basis points informs its hazard rate of default, where the assumed recovery rate is 36.0%. If the
Suppose a bond's observed credit spread of 160 basis points informs its hazard rate of default, where the assumed recovery rate is 36.0%. If the default is driven by a Poisson process, which is nearest to the five (5) year cumulative default probability? 12.50% 9.25% 11.75% 8.00%
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