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Question
Cumulative default probability refers to
A. probability that a borrower will default over a specified multiyear period.
B. expected maximum change in the loan rate due to a change in the risk factor on the loan.
C. historic default rate experience of a bond or loan.
D. expected maximum change in the loan rate due to a change in the credit premium.
E. probability that a borrower will default in any given year.
Answer
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