Your credit risk manager at Dandenong Bank has provided you with the following information about market yield curves. The 1 year risk free Treasury Bonds is 0.4% and the 2 year risk free Treasury Bonds is 1.6%. The 1 year Corporate BBB Bonds is 4.2% and the 2 year Corporate BBB Bonds is 5.4%. Calculate the probability of default in year two of a BBB Corporate Bond, assuming that there is no default in year one?

Note: Do not write any % symbol in your answer. For example: if your answer is 2.88%, then simply write 2.88 NOT as 0.0288 or 2.88%

Question 12 Not yet answered Marked out of 5.00 P Flag question Your credit risk manager at Dandenong Bank has provided you with the following information about market yield curves. The 1 year risk free Treasury Bonds is 0.4% and the 2 year risk free Treasury Bonds is 1.6%. The 1 year Corporate "BBB" Bonds is 4.2% and the 2 year Corporate "BBB" Bonds is 5.4%. Calculate the probability of default in year two of a BBB" Corporate Bond, assuming that there is no default in year one? Note: Do not write any % symbol in your answer. For example: if your answer is 2.88%, then simply write 2.88 NOT as 0.0288 or 2.88% Answer: Question 12 Not yet answered Marked out of 5.00 P Flag question Your credit risk manager at Dandenong Bank has provided you with the following information about market yield curves. The 1 year risk free Treasury Bonds is 0.4% and the 2 year risk free Treasury Bonds is 1.6%. The 1 year Corporate "BBB" Bonds is 4.2% and the 2 year Corporate "BBB" Bonds is 5.4%. Calculate the probability of default in year two of a BBB" Corporate Bond, assuming that there is no default in year one? Note: Do not write any % symbol in your answer. For example: if your answer is 2.88%, then simply write 2.88 NOT as 0.0288 or 2.88%