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Use the model on Slide #8, AA-rated bonds have a lifetime default rate of 3.6%. Assume that AA-rated bonds have an average time to maturity

image text in transcribed Use the model on Slide \#8, AA-rated bonds have a lifetime default rate of 3.6%. Assume that AA-rated bonds have an average time to maturity of 7.5 years. Compute the probability that the firm defaults on the fourth coupon payment. Keep your answer in 6 decimal places, e.g., 0.123456. Avoid rounding errors. Show your work and highlight your final answers

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