Verify that the numbers in the second column of Table 17.5 are consistent with the numbers in
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Verify that the numbers in the second column of Table 17.5 are consistent with the numbers in the second column of Table 17.4.
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Table 17.4 Cumulative Default Probabilities Compared with Credit Spreads Rating AA AA A BBB BB B CCC/C Cumulative 7-Year Default Probabilities (%), 1981- 2020 0.51 0.49 0.76 2.27 8.89 20.99 50.75 7-Year Credit Spread (bp) 1996-2007 35.74 43.67 68.68 127.53 280.28 481.04 1,103.70
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To verify that the numbers in the second column of Table 175 are consistent with the numbers in the second column of Table 174 we need to understand t...View the full answer
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