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Suppose the hazard rate is constant and equal to 0.090( Exponential Distribution). In this case, each of the following is true except which is false?
Suppose the hazard rate is constant and equal to 0.090( Exponential Distribution). In this case, each of the following is true except which is false?
A. The unconditional one-year default probability is 8.6%
B. The unconditional two-year default probability is 16.5%
C. The probability of joint event of survival through the first year and default in the second year is 7.9%
D. The conditional one- year default probability, given survival through the first year, is 17.3%
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