Consider two firms, one with an FF rating and one with an FFF rating. What is the

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Consider two firms, one with an FF rating and one with an FFF rating. What is the probability that after 4 years each will have retained its rating? What is the probability that each will have moved to one of the other two ratings?

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Derivatives Markets

ISBN: 9789332536746

3rd Edition

Authors: Robert McDonald

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Question Posted: Aug 12, 2015 03:03 AM

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Consider two firms, one with an FF rating and one with an FFF rating. What is the

Question:

Rating to:_ Rating from: F FF FFF 0.9 0.07 0.03 0.15 0.80 0.05 0.10 0.30 0.6

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The answer to these questions can be read directly from the transition matrix FourY...View the full answer

Derivatives Markets

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