Consider a firm with an F rating. a. What is the probability that after 4 years it

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Consider a firm with an F rating.
a. What is the probability that after 4 years it will still have an F rating?
b. What is the probability that after 4 years it will have an FF or FFF rating?
c. From examining the transition matrix, are firms tending over time to become rated more or less highly? Why?
Consider a firm with an F rating.a. What is the
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Derivatives Markets

ISBN: 9789332536746

3rd Edition

Authors: Robert McDonald

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