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 0.7% and the 2 year risk free Treasury Bonds is 1.6%. The 1 year Corporate "BBB" Bonds is 4.8% and the 2 year Corporate "BBB" Bonds is 6.3%. 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: 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 0.7% and the 2 year risk free Treasury Bonds is 1.6%. The 1 year Corporate "BBB" Bonds is 4.8% and the 2 year Corporate "BBB" Bonds is 6.3%. 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%